7.1-7.2 Worksheet

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 (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested or borrowed.

Front

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

Back

Future Value = Present Value * (1 + growth rate)^number of years.

Front

What does it mean for a population to grow at a certain percentage per year?

Back

It means that each year, the population increases by that percentage of its current size.

Front

What is the effect of a negative growth rate on a population?

Back

A negative growth rate indicates that the population is decreasing, meaning that the number of individuals is declining over time.

Front

How do you calculate the total amount paid on a loan with compound interest?

Back

Total Amount Paid = Principal + Interest, where Interest can be calculated using the formula A = P(1 + r/n)^(nt).

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and also on the accumulated interest from previous periods.

Front

How do you determine the value of an asset after a certain number of years with appreciation?

Back

Value = Initial Value * (1 + appreciation rate)^number of years.

Front

What is the significance of the compounding frequency in interest calculations?

Back

The compounding frequency affects how often interest is calculated and added to the principal, which can significantly impact the total amount of interest earned or paid.

Front

What is the formula for calculating the depreciation of an asset?

Back

Depreciation = Initial Value * (1 - depreciation rate)^number of years.

Front

How do you calculate the population after a certain number of years with a growth rate?

Back

Population = Initial Population * (1 + growth rate)^number of years.