Exponential Equation Compound Interest

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

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

Katy deposited $90 in a savings account earning 5% interest, compounded quarterly. Which of the following equations could represent the amount of money in her account yearly?

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$6500 is invested in a bank account that earns 2.6% interest, compounded monthly. Write an expession that represents the amount of money in the accout after 5 years.

Mathematical Equivalence

ON

What is the correct function that models an investment of $2000 compounded monthly with an interest rate of 3.4% ?

V(t) is the value, t is time

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P = $2,500, r = 2.5%, t = 5 years, compounded semi-annually.... Round to the nearest hundredth.

$5000 is deposited in an account that yields 4.75% interest compounded monthly. To the nearest dollar, what would the balance be after 35 years?

Matt earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually (n=1). What will be his balance after 15 year?

• $827.52

• $831.10

• $839.45

• $846.80

Find the balance in the account after the given period.

$5000 deposit earning 1.5% compounded quarterly after 3 years

• $5,229.70

• $7,604.38

• $7,777.27

• $5,538.86