

Compound Interest and Exponential Growth
Interactive Video
•
Mathematics, Science, Education
•
9th - 12th Grade
•
Practice Problem
•
Hard
Aiden Montgomery
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula for exponential growth?
F(t) = a * t^r
F(t) = a * (1 - r)^t
F(t) = a * r^t
F(t) = a * (1 + r)^t
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If an investment grows at 7% annually, what is the growth rate in decimal form?
7.0
0.007
0.07
0.7
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the key difference between exponential growth and decay?
Growth involves addition, decay involves subtraction
Both involve subtraction
Growth involves subtraction, decay involves addition
Both involve addition
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do you express a 4% decay rate as a decimal?
0.4
0.04
4.0
0.004
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does 'n' represent in the compound interest formula?
The principal amount
The interest rate
The number of times interest is compounded per year
The total time in years
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If interest is compounded quarterly, how many times is it compounded in a year?
12
4
2
52
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the future value of an investment of $4,000 at 3.9% interest compounded semi-annually after 12 years?
$6,358.48
$5,000
$7,000
$8,000
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