Understanding Compound Interest and Exponential Functions

The video tutorial explains how to calculate the future value of an investment using the compound interest formula. It covers the steps to write an exponential function representing the investment's growth and demonstrates how to calculate the future value after 16 years. Additionally, it shows how to determine the time required for the investment to double using a graphical approach on a calculator.

What is the initial amount invested by Tepes Soo?

• $1,000

• $15,000

• $10,150

• $10,000

What is the annual interest rate expressed as a decimal?

• 0.039

• 0.39

• 3.9

• 0.0039

Which formula is used to calculate compound interest?

• A = P(1 + r/n)^(nt)

• A = P + rt

• A = P(1 + rt)

• A = P(1 - r/n)^(nt)

How much will the investment be worth after 16 years?

• $18,720.39

• $18,000.00

• $15,000.00

• $20,000.00

What is the purpose of entering the function into y1 on the calculator?

• To calculate simple interest

• To graph the exponential function

• To find the principal amount

• To determine the interest rate

What is the goal when finding the doubling time of an investment?

• To determine when the investment doubles

• To find when the investment triples

• To calculate the interest rate

• To halve the initial investment

What is the value of the investment when it doubles?

• $30,450

• $15,000

• $10,150

• $20,300

How is the doubling time determined graphically?

• By finding the maximum point of the graph

• By measuring the area under the curve

• By finding the intersection of y1 and y2

• By calculating the slope of the graph

What is the approximate time it takes for the investment to double?

• 20 years

• 18.12 years

• 15 years

• 16 years

What is the significance of setting the y maximum to more than 20,300?

• To calculate the interest rate

• To determine the principal amount

• To find the initial investment

• To ensure the graph is visible