IM 5.16 Practice Problems

Automobiles start losing value, or depreciating, as soon as they leave the car dealership. Five years ago, a family purchased a new car that cost $16,490. If the car lost 13% of its value each year, what is the value of the car now?

• 8218.96

• 16490

• 8000

• 8124.23

The number of trees in a rain forest decreases each month by 0.5%. The forest currently has 2.5 billion trees. Write an expression to represent how many trees will be left in 10 years.

• 2005

• 1500

• 98

• 1000

• The lion population is increasing slowly

• The lion population is decreasing by 2%

• The lion population is decreasing by 2

• The lion population is increasing by 2%

• 1122

• 1226

• 0

• 98

A bank account pays 0.5% monthly interest.

If $500 is put in the account, what will the balance be at the end of one year, assuming no additional deposits or withdrawals are made?

• 530.84

• 520.21

• 2.5

• 100000

A bank account pays 0.5% monthly interest.

What is the effective annual interest rate?

• About 6.17%

• About 6%

• About 12%

• About 6

A bank account pays 0.5% monthly interest.

Is the effective annual interest rate more or less than 6% (the nominal interest rate)?

• More, it is growing exponentially and not linearly

• More, it is growing linearly and not exponentially

• Less, it is growing exponentially and not linearly

• Less, it is growing linearly and not exponentially

Match the following functions to the graphs A, B, and C.

• A

• C

• B