exponential growth, decay, and compound interest

​Compounded CONTINUOUSLY

Open Ended

​1. The value of homes in a neighborhood increase in value an average of 3% per year. You purchase a home for $180,000.

​a) Make a prediction about what the value of the home will be after 25 years. __________

Open Ended

​1.(cont.) The value of homes in a neighborhood increase in value an average of 3% per year. You purchase a home for $180,000.

​

b) Use the correct formula to help you find the exact amount it would be worth after the 25 years.__________

c) Was your prediction close? Discuss.

Multiple Choice

2. Charlie purchases a 7 year old used RV

for $54,000. If the rate of depreciation was 13% per year during those 7 years, how much was the RV worth when it was new? Give your answer to the nearest one thousand dollars.

• $20,372

• $143,000

• $20,000

• $74,000

Open Ended

3. If $20,000 is invested at 6% annual interested compounded quarterly, predict how much will the investment be worth in 12 years without using a formula. Give your answer to the nearest dollar.

Fill in the Blank

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded continuously. What will the account balance be after 15 years?

Multiple Choice

3.(cont.) If $20,000 is invested at 6% annual interested compounded quarterly, how much will the investment be worth in 12 years. Use the correct formula to calculate and then select your answer to the nearest dollar.

• $14,398

• $26,433

• $40,870

• $43,932

Multiple Choice

EXIT TICKET QUESTION:

A population of fish starts at 8,000 and decreases by 6% per year. What is the population of fish after 10 years?

• 14327

• 4309

• 839

• 7680

Multiple Choice

EXIT TICKET QUESTION:

Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42      

• $33101.13  

• $327453.08        

• $34,710.88