Mastering Compound Interest and Exponential Growth

A bank offers a savings account with an annual interest rate of 5% compounded annually. If you deposit $1,000, how much money will you have in the account after 3 years?

• 1200.00

• 1100.50

• 1050.25

• 1157.63

A population of bacteria doubles every 4 hours. If you start with 500 bacteria, how many will there be after 12 hours?

• 8000

• 4000

• 2000

• 1000

You invest $2,000 in a fund that earns 6% interest compounded quarterly. How much will you have after 5 years?

• 3000.00

• 2800.50

• 2500.00

• 2693.71

A car's value decreases by 15% each year. If the car is currently worth $20,000, what will its value be after 2 years?

• $12,000

• $18,000

• $16,000

• $14,450

A certain species of fish in a lake grows exponentially. If there are currently 200 fish and the population doubles every month, how many fish will there be after 6 months?

• 4000

• 6400

• 10000

• 12800

You take out a loan of $5,000 with an interest rate of 8% compounded annually. How much will you owe after 4 years?

• $6,802.45

• $6,000.00

• $5,000.00

• $7,000.00

A tree grows at a rate of 10% per year. If the tree is currently 3 feet tall, how tall will it be after 5 years?

• 3.30 feet

• 5.00 feet

• 4.83 feet

• 6.00 feet

A city’s population is currently 150,000 and is expected to grow at a rate of 3% per year. What will the population be in 10 years?

• 210,000

• 201587

• 165,000

• 180,000

You invest $1,500 in a retirement account that earns 7% interest compounded monthly. How much will you have in the account after 10 years?

• 2500.00

• 3500.50

• 4000.75

• 3018.29

A certain type of investment grows exponentially. If you invest $1,000 and it grows to $2,500 in 5 years, what is the annual growth rate?

• 20.63%

• 15.00%

• 10.75%

• 25.50%