Exponential Equation and Compound Interest

Steve deposited

$5,000 in a savings account that pays 4% interest compounded annually. Which

equation could be used to find the value of the account after 3 years?

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

The expression 12(1.015)^t models the population of elephants in a wildlife refuge after t years since 1975.
What does the value 1.015 represent?

• The number of elephants was 1,015 in 1975.

• The number of elephants increases by 1.5% each year.

• The number of elephants increases by 101.5% each year.

• The number of elephants is multiplied by 1.015 each year.

Is the following function exponential growth, exponential decay, linear, or none of the above.
g(x) = 740(.001)^3x

• Exponential growth

• Exponential decay

• Linear

• None of the above

What does the r stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

How long will it take $3000 to double if it is invested in an account that pays 3% compounded continuously?

• 23.1 years

• 22.1 years

• 21.1 years

• 20.1 years

Chelsea put $7500 into an account paying 5% compounded continuously. She now has $10,643.01. How long has the money been in the account?

• 7 years

• 6 years

• 5 years

• 4 years

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

What does the P stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

Morales Bank offers you 3.9% interest compounded monthly. How long will it take for your money to triple if you use Morales Bank?

• 17 years and 10 months

• 28 years and 2 months

• 28 years and 3 months

• 29 years

Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually.

Which exponential equation can be used to find how much money Karla will earn in 15 years?

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