Introduction to Compound Interest and Exponential Functions

What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years?

• a. $8,020.22
•  b. $7,959.55
•  c. $8,081.55 
• d. $8,181.55

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded quarterly for three years.

• $4422.03
• $4427.62
• $4428.90
• $4429.51

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded monthly for three years.

• $4422.03
• $4427.62
• $4428.90
• $4429.51

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

• $412,749.79
• $529.305.61
• $689,546.99
• $640,891.53

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded annually for three years.

• $4422.03
• $4427.62
• $4428.90
• $4429.51

Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawls were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 

• 2000(1.02)¹³
• 2000(0.98)¹³
• 2000(1+0.02)¹⁶
• 2000(0.02)¹⁶

Heather decides to invest $3500 into her savings account and leave it there (untouched) for 25 years. The savings account has an interest rate of 6.4% compounded quarterly. How much will she have in 25 years?

• $17,117.44
• $16,504.74
• $3,997.79
• $20,319.90

Average Rate of Change means

• Growth Rate
• Slope
• Exponential
• Starting Value

Emily's parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the balance after 18 years?

• $6,273.50
• $6,314.08
• $6,385.72
• $6,427.94

Andy invests $500 into an account with 4.8% interest, compounded monthly. How much will be in the account in 10 years?

• $799.06
• $520.36
• $807.26
• $877.61