Exponential Equation and Compound Interest

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much will she have in her account in 10 years?

• $4915.59

• $3933.28

• $2979.81

• $4005.09

If $400 is invested at 35% interest, compounded continuously, for 2 years, what is the ending balance?

• $280

• $680

• $1,034.47

• $805.50

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

Which investment would have a larger balance after 5 years?

• 4% compounded monthly

• 3.9% compounded daily

Marcus is buying a new Jet Ski for $12,500. He is considering 2 credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which option is better and how much will he save?

• $495.21 saved

• $573.83 saved

• $495.21 saved

• $573.83 saved

Classify the model as Exponential GROWTH or DECAY.
A=1200(.85)⁶

• Growth

• Decay

The population of Eden is growing continuously at a rate of 1.9%. If the current population is 15,230, about how many years will it take for the population to reach 20,000?

• 31

• 2

• 15

• 68

What type of function is y = 7(5/4)^x?

• Exponential Growth

• Exponential Decay

• Linear

• None of the above

Write an equation that models the following situation:
Samantha's hair was known to grow very rapidly. It began at a length of 6 in and grew at a rate of 14% a week.

• y=6(0.14)^x

• y=6(1+14)^x

• y=6(1.14)^x

• y=6(0.86)^x

In some investment accounts interest is computed on interest that has been earned in previous years. What is this method of computing interest called?

• compound interest

• double interest

• simple interest

• not enough information