Applications of Exponential Functions in PF

Is the value of a house increasing over time an example of appreciation or depreciation?

• Appreciation

• Depreciation

• Neither

Is the annual decrease in the value of a car an example of appreciation or depreciation?

• Appreciation

• Depreciation

• Neither

What is the value of the machine when it is first purchased? Use the graph to find your answer.

• $10 000

• $15 000

• $20 000

• $45 000

$4245 compounded annually over 8 years with an annual interest rate of 6.5% will earn how much in interest?

• $2780.46

• $7025.46

• $2207.40

• $6452.40

In the formula y = a(1±r)^t, what does the "a" represent?

• The total after the increase or decrease

• The initial amount

• The Rate of Change

• The number of times the change has happened over time

In the formula y = a(1±r)^t, what does the "t" represent?

• The total after the increase or decrease

• The initial amount

• The Rate of Change

• The number of times the change has happened over time

In the formula y = a(1±r)^t, what does the "r" represent?

• The total after the increase or decrease

• The initial amount

• The Rate of Change

• The number of times the change has happened over time

Annual sales for a fast food restaurant are $650,000 and are increasing at a factor of 1.04 per year. Use an exponential function to find the annual sales after 7 years.

• $1,000,124

• $4,030

• $855,355.66

• $434,505.66

You bought a Boston Whaler in 2004 for $12,500. The boat's value depreciates by 7% a year. How much is the boat worth in 2012?

• $11625
• $6994.77
• $21,477
• $875

Ash has $8,000 in a savings account. The interest rate is 3% compounded once a year.

To the nearest cent, how much will he have in his account in 4 years?

• $9,004.07

• $2,2848.80

• $9,011.94

• $8,242.71