Compound Interest and Exponential Growth

The video tutorial covers exponential growth and decay, explaining their formulas and providing examples. It also introduces compound interest, detailing how it is calculated. The tutorial includes practical examples for each concept, demonstrating how to apply the formulas to real-world scenarios, such as investments and student enrollment growth.

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

If an investment grows at 7% annually, what is the growth rate in decimal form?

• 7.0

• 0.007

• 0.07

• 0.7

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

How do you express a 4% decay rate as a decimal?

• 0.4

• 0.04

• 4.0

• 0.004

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

If interest is compounded quarterly, how many times is it compounded in a year?

• 12

• 4

• 2

• 52

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

How much interest is earned on a $750 investment at 3% interest compounded weekly after 20 years?

• $616.35

• $500

• $700

• $800

What is the total amount in an account after 6 years if $25,000 is invested at 4.5% interest compounded monthly?

• $35,000

• $32,732.58

• $40,000

• $30,000

If an account offers 0.8% interest compounded bi-monthly, how much interest will be earned on a $300 deposit after 10 years?

• $30

• $24.98

• $20

• $35