Exponential Growth/Decay & Compounded Continuously Word Problems

More and more people are purchasing food from farmers' markets. As a consequence, a market researcher predicts that the number of farmers' markets will increase by 15% each year. If there are 6,200 farmers' markets this year, how many will there be in 10 years? (Round to the nearest whole number if necessary).

• 25,082

• 12,937

• 62,000

• 43,511

A publishing industry report predicts that magazine subscriptions will drop by 10% each year. If this prediction is correct, then how many subscribers will a magazine with 98,000 subscribers have in 10 years? (Round to the nearest whole number if necessary).

• 34,170

• 16,348

• 7690

• 76,023

Jenny has $20 in a savings account. The interest rate is 5%, compounded continuously. To the nearest cent, how much will be in the savings account in 2 years?

• $22.10

• $45.79

• $1.99

• $22.05

Lauren has $90 in a savings account. The interest rate growing continuously at a rate of 5%. To the nearest cent, how much will she have in 2 years?

• $99.47

• $21.98

• $56.46

• $9.21

A cliff overlooking Oak Grove Lake is experiencing erosion, losing elevation at a rate of 5% every millennium. The cliff's current elevation is 1,200 meters. What will its elevation be in 6 millennia? (Round to the nearest whole number if necessary).

• 882

• 465

• 349

• 975

Kelsey deposited $30 in a savings account earning 10% interest continuously. To the nearest cent, how much interest will she earn in 3 years?

Hint: Subtract the new amount from the initial amount of money.

• $10.50

• $40.50

• $39.93

• $9.93

Your new computer cost $1500 but it depreciates in value by about 18% each year. How much will your computer be worth in 6 years? (Round to the nearest cent.)

• $456.01

• $556.98

• $778.22

• $332.63

You have inherited land that was purchased for $30,000 in 1960. The value of the land increased by approximately 5% per year. What is the approximate value of the land in the year 2011?

• $344,022
• $31,500
• $15,000
• $28,500