Exponential Equation and Compound Interest

Your 6 year investment of $40,000 at 14% interest compounded annually is worth how much now?

• $47,798.90

• $87,798.90

• $127,798

• $7,798

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31

• $12,749.30

• $12,657.59

• $12550.84

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05

Given an investment of $1,500:
Which investment would have a larger balance after 5 years?
4% compounded monthly
3.9% compounded daily. 

• 4% compounded monthly

• 3.9% compounded daily

Shawn 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 with10% interest compounded annually. Which option is better and how much will he save?

• A; $495.21

• B; $573.83

• C; $495.21

• D; $573.83

You invest $400 for 5 years at an interest rate of 4.29% each year. Which equation models this?

• y=400(1 - 0.0429)⁵

• y=400(1+.0429)⁵

• y=400(1+ 4.29)⁵

• y=400e^0.049*5

Classify the model as Exponential GROWTH or DECAY.
A=10(1.01)³

• Growth

• Decay

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

Suppose a culture of bacteria begins with 5000 cells and dies by 30% each year. Write an equation that represents this situation.

• y = 5000(0.7)^x

• y = 30(5000)^x

• y = 5000(1.3)^x

• y = 5000(0.3)^x