Modeling Growth: Real-Life Compound Interest Challenges

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?

• 1050.25

• 1200.00

• 1157.63

• 1100.50

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

• 8000

• 2000

• 1000

• 4000

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

• 2800.50

• 3000.00

• 2500.00

• 2693.71

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

• $18,000

• $14,450

• $12,000

• $16,000

A certain species of fish in a lake grows at a rate of 10% per year. If there are currently 1,200 fish, how many will there be in 4 years?

• 1757

• 2000

• 1500

• 1200

You take out a loan of $5,000 with an interest rate of 8% compounded annually. How much will you owe after 2 years?

• $4,500

• $5,500

• 5832

• $6,000

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

• 12.50 feet

• 11.58 feet

• 10.25 feet

• 13.00 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 5 years?

• 173891

• 200,000

• 180,000

• 160,000

You invest $1,500 in a stock that has an annual return of 7% compounded annually. How much will your investment be worth after 10 years?

• 2500.00

• 3200.50

• 1800.00

• 2950.73

A certain type of investment grows by 12% each year. If you invest $800, how much will it be worth after 6 years?

• 1578.99

• 1200.00

• 1500.75

• 1800.50