Identify Percent of Growth or Decay

Front

What does 'monthly' mean in terms of frequency per year?

Back

12 times a year.

Front

What is exponential growth?

Back

A situation where a quantity increases by a consistent percentage over time.

Front

What is exponential decay?

Back

A situation where a quantity decreases by a consistent percentage over time.

Front

How do you calculate the future value of an investment with annual compounding interest?

Back

Use the formula: y = P(1 + r)^t, where P is the principal, r is the interest rate, and t is the time in years.

Front

If a home is purchased for $160,000 and appreciates at 5% per year, how do you find its value after 20 years?

Back

Use the formula: Future Value = 160000(1 + 0.05)^20.

Front

What is the formula for calculating compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.

Front

What is the initial amount in the equation h(t) = 1500(1.074)^t?

Back

The initial amount a is 1500.

Front

How do you determine the total amount owed on a credit card after a certain number of years with compound interest?

Back

Use the formula: y = P(1 + r)^t, where P is the initial balance, r is the interest rate, and t is the number of years.

Front

What does it mean if a table shows 'neither' exponential growth nor decay?

Back

It means the data does not consistently increase or decrease by a percentage over time.

Front

What is the significance of the base in an exponential function?

Back

The base determines the rate of growth or decay; a base greater than 1 indicates growth, while a base between 0 and 1 indicates decay.