Personal Finance Q3 DCA Review

You are planning to save $30,000 for a down payment on a house in 7 years. Assuming an average annual return of 5% on your investments, which formula would you use to determine the present value you need to invest?

Which of the following exponential functions represents an initial value of 1450 and a decay of 18% for x years?

You wish to accumulate $50,000 for a retirement fund in 15 years. Assuming an average annual return of 6% on your investments, which formula would you use to determine the present value you need to invest?

In March, 2020, before the Covid-19 lockdown, 1,200,000 Texans had applied for unemployment. During the COVID-19 lockdown, the number of people applying for unemployment increased by 4% each month. What exponential function can be used to find the number of people applying for unemployment after x months of COVID-19 lockdown?​

Susan invests $10000 in a bond that yields an annual interest rate of 2.5% compounded quarterly. What will be the total amount in the bond after 6 years?

Let A be the final amount in the bond. Use the compound interest formula: $$A=P\left(1+\frac{r}{n}\right)^{nt}$$ , where:

P= Principal amount = $10000

r= annual interest rate = 2.5%,

n= number of times interest applied per time period = 4

t =time the money is invested for in years.

Maria invests $3000 in a bond that yields an annual interest rate of 3% compounded monthly. What will be the total amount in the bond after 5 years?

Use the compound interest formula: $$A=P\left(1+\frac{r}{n}\right)^{nt}$$ , where:

P= Principal amount = $3000 r= annual interest rate = 3% or 0.03,

n= number of times interest applied per time period = 12

t =time the money is invested for in years.

At the beginning of the year, Danny deposited $8000 in a saving account that earns an annual interest rate of 5.5% compounded monthly. What is the total amount of money in the account after 4 years?

Let A be the total amount of money. Use the compound interest formula: $$A=P\left(1+\frac{r}{n}\right)^{nt}$$ , where:

P= Principal amount = $8000 r= annual interest rate = 5.5%

n= number of times interest applied per time period = 12

t =time the money is invested for in years.

Select the best description of the following exponential equation.

$$f\left(x\right)=45\left(1.10\right)^x$$

Select the best description of the following exponential equation.

$$f\left(x\right)=60\left(0.80\right)^x$$

Select the best description of the following exponential equation.

$$f\left(x\right)=60\left(0.95\right)^x$$