Exponential Word Problems Compounded Interest

Jenny has $20 in a savings account. The interest rate is 5%, compounded annually. To the nearest cent, how much interest will she earn in 2 years?

• $2.05

• $45.79

• $1.99

• $7.51

Lauren has $90 in a savings account. The interest rate is 5%, compounded annually. To the nearest cent, how much will she have in 2 years?

• $99.23

• $21.98

• $56.46

• $9.21

Kelsey deposited $30 in a savings account earning 10% interest, compounded annually. To the nearest cent, how much interest will she earn in 3 years?

• $9.93

• $2.01

• $17.60

• $5.75

Ash has $8,000 in a savings account. The interest rate is 3% compounded semi-annually .

To the nearest cent, how much will he have in his account in 4 years?

• $9,004.07

• $2,2848.80

• $9,011.94

• $8,242.71

The population of Winnemucca, Nevada, can be modeled by P=6191(1.04)^t where t is the number of years since 1990. What was the population in 1990? 

• 0 people

• It doesn't say

• I don't know

• 6191

The population of Winnemucca, Nevada, can be modeled by P=6191(1.04)^t where t is the number of years since 1990. What percent did the population increase each year?

• 4%

• It doesn't say

• I don't know

• 400%

You have inherited land that was purchased for $30,000 in 1960. The value of the land increased by approximately 5% per year. What is the approximate value of the land in the year 2011?

• $344,022

• $31,500

• $15,000

• $28,500

The original value of a painting is $1400, and the value increases by 9% each year. Write an exponential growth function to model this situation.

• y=1400(1.09)^x

• y=1.09(1400)^x

• y=1400(.91)^x

• y=1.09^x

The population of Bloom Falls, Mass. (population 937) is slowly moving to a bigger city.
Every year the population drops by 4.5%.
What is the multiplier for this problem?

• 1.045 

• .045 

• .955

• 1.955

Does the following equation show growth or decay?
y=10,000*1.26^x

• Growth 

• Decay