Exponential Functions Compound Interest

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

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

• Growth

• Decay

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

• Growth

• Decay

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

Emily 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. (Round your answer to the nearest hundredth, because it is money.)

Mathematical Equivalence

ON

John deposits $1000 into her savings account. The bank account earns 15%, compounded monthly. Write an exponential growth function that represents the money in her account after t years.

y = ?

Mathematical Equivalence

ON

Answer explanation

This question involves compound interest, so use your formula for compound interest.

Emily 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. (Round your answer to the nearest hundredth, because it is money.)

Mathematical Equivalence

ON

$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

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