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Exponential Growth/Decay and Compound Interest Word Problems

Total questions: 21

Worksheet time: 5hrs 15mins

Name
Class
Date
1.

Middletown High School has student elections every year. Lately, the school has seen a 5% decrease in voting from election to election. If 910 students voted this year, how many will be expected to vote 8 years from now? (Round to the nearest whole number if necessary).

a)

604

b)

777

c)

29

d)

198

2.

More and more people are purchasing food from farmers' markets. As a consequence, a market researcher predicts that the number of farmers' markets will increase by 15% each year. If there are 6,200 farmers' markets this year, how many will there be in 10 years? (Round to the nearest whole number if necessary).

a)

25,082

b)

12,937

c)

62,000

d)

43,511

3.

A publishing industry report predicts that magazine subscriptions will drop by 10% each year. If this prediction is correct, then how many subscribers will a magazine with 98,000 subscribers have in 10 years? (Round to the nearest whole number if necessary).

a)

34,170

b)

16,348

c)

7690

d)

76,023

4.

Lauren has $90 in a savings account. The interest rate is 5%, compounded annually. To the nearest cent, how much will she have in 2 years?

a)

$99.23

b)

$21.98

c)

$56.46

d)

$9.21

5.

A cliff overlooking Oak Grove Lake is experiencing erosion, losing elevation at a rate of 5% every millennium. The cliff's current elevation is 1,200 meters. What will its elevation be in 6 millennia? (Round to the nearest whole number if necessary).

a)

882

b)

465

c)

349

d)

975

6.

Thanks to its environmental initiatives, Silvergrove has cut its annual CO2 emissions by 5%. This year, the town produced 290,000 metric tons of emissions. If the downward trend continues, how much CO2 will be produced 7 years from now? (Round to the nearest whole number if necessary).

a)

202,518

b)

135,792

c)

78,376

d)

20,658

7.

The mice population is 25,000 and is decreasing by 20% each year. What will be the mice population after 3 years?

a)

12,800

b)

15,777

c)

102, 475

d)

2,500

8.

Your new computer cost $1500 but it depreciates in value by about 18% each year. How much will your computer be worth in 6 years? (Round to the nearest cent.)

a)

$456.01

b)

$556.98

c)

$778.22

d)

$332.63

9.

P = 8(1.23)x

Is the function growth or decay?

Check the box:

a)

Growth

b)

Decay

10.

Q = 3.1(0.78)x

Is the function growth or decay?

Check the box:

a)

Growth

b)

Decay

11.

Annual sales for a fast food restaurant are $650,000 and are increasing at a rate of 4% per year. Use an exponential function to find the annual sales after 7 years.


Round to two decimal places (like dollars and cents).

(a)  

12.

The population of the United States has been increasing at an average rate of 0.91%. If the population was about 303,146,000 in 2008, predict the population in 2020.

a)

337,957,677 people

b)

438,124,677 people

c)

862,082,540 people

d)

363,359,037 people

13.

Nathan bought a VERY fancy boat for about $125,000. If the boat's value depreciates at the rate of 15% per year, what is the value of the boat at the end of 10 years?

a)

$12,512.50

b)

$18,750

c)

$24,609.30

d)

$505,694.72

14.

Gasoline costs $1.99 per gallon. If the price per gallon increases an average of 6% per month, which function models the exponential growth of the pricing?

a)

1.06(1.99)t

b)

1.99(1.06)t

c)

[1.06(1.99)]t

d)

1.99(.94)t

15.
Twenty years ago, Mr. Davis purchased his home for $160,000. Since then, the value of the home has increased about 5% per year. How much is the home worth today?
a)
$176,783.29
b)
$424,527.63
c)
$57,357.75
d)
$532,041,076.80
16.
Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Karla earn in 15 years?
a)
$1,584.62
b)
$2,651.39
c)
$2,706.86
d)
$1,825.10
17.
Emily would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.
a)
$15,415.94
b)
$15,683.28
c)
$15,927.56
d)
$16,109.05
18.
Monthly means how many times a year?
a)
b)
12
c)
52
d)
365
19.

Jay'den earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

a)
$827.52
b)
$831.10
c)
$839.45
d)
$846.80
20.

Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?

a)
$2201.25
b)
$2694.55
c)
$2707.45
d)
$2708.63
21.
Given an investment of $1,500:
Which investment would have a larger balance after 5 years?
Option 1 - 4% compounded monthly
Option 2 - 3.9% compounded daily. 
a)
Option 1
b)
Option 2