Compound Interest and Exponential Functions

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

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

A population growing at an annual rate r will triple in a time t given by the formula A = (1 + r)^t. If the growth rate remains constant and equals 6% per year, about how long will it take the population of the town to triple?

• 18.3 years

• 8 years

• 0.8 years

• 1.8 years

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

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

Which investment would have a larger balance after 5 years?

• 4% compounded monthly

• 3.9% compounded daily

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

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?

• Option A; $495.21 saved

• Option A; $573.83 saved

• Option B; $495.21 saved

• Option B; $573.83 saved

What is this?

• The compound interest formula

• The simple interest formula

• A linear equation

• A quadratic equation