Mastering Exponential Growth: Interest & Time Problems

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

• 1050.75

• 1157.63

• 1200.00

• 1100.50

You invest $2,000 in a fund that grows at an annual rate of 6% compounded quarterly. How much will your investment be worth after 5 years?

• 2800.25

• 2693.71

• 3000.50

• 2500.00

A car's value depreciates at a rate of 15% per year. If the car is currently worth $20,000, what will its value be after 4 years?

• $10,440.12

• $8,000.00

• $15,000.00

• $12,500.00

You want to save for a vacation and plan to invest $1,500 in an account that earns 4% interest compounded monthly. How long will it take for your investment to grow to $2,000?

• Approximately 0.25 years or 3 months

• Approximately 0.69 years or 8.33 months

• Approximately 2 years or 24 months

• Approximately 1.5 years or 18 months

A population of bacteria doubles every 3 hours. If you start with 500 bacteria, how many will there be after 12 hours?

• 8000

• 1000

• 16000

• 4000

You take out a loan of $5,000 with an interest rate of 7% compounded annually. How much will you owe after 2 years?

• $5,200.00

• $5,000.00

• $5,724.50

• $6,000.00

A certain investment grows to $10,000 in 8 years at an annual interest rate of 3% compounded annually. What was the initial investment amount?

• 7895.84

• 7500.50

• 9000.25

• 8000.00

If you invest $1,200 in a savings account with a 5% interest rate compounded semi-annually, how much will you have after 10 years?

• 1200.00

• 1536.10

• 1800.00

• 2000.00

A piece of land is worth $50,000 today and appreciates at a rate of 8% per year. What will its value be in 5 years?

• 60000.00

• 80000.00

• 73466.40

• 50000.00

You want to know how long it will take for your investment of $3,000 to grow to $4,500 at an annual interest rate of 6% compounded annually. What is the time period required?

• Approximately 3.5 years

• Approximately 5 years

• Approximately 7.7 years

• Approximately 10 years