Exponential Interest Application

In NYS the minimum was has grown exponentially. In 1966, it was $1.25 an hour and in 2015 it was $8.75. What is the rate of growth to the nearest percent?

• .04%

• 4%

• 40%

• none of the above

The function p(t) = 110e^0.03922t models the population of a city, in millions, t years afer 2010. Consider the following:

I. The current population is 110 million.

II. The populations increases continuously at a rate of approx. 3.9% per year.

The model supports which choice?

• I. only

• I and II

• II. only

• neither I or II

The value of Julie's savings account is modeled by S(x) = 5,000(1.025)^0.7x, where x is years since 1990. What is the approximate growth rate of the savings account?

• 0.72%

• 1.74%

• 2.50%

• 18.87%

The population of a city , which was 1 million in 1990, has been decreasing exponentially. In 2010, the population was 560,000. Which of the following best represents this decay model?

• y = 1,000,000(.98)^t

• y = 560,000(.98)^t

• y = 1,000,000(1.02)^t

• y = 560,000(1.02)^t

The exponential function f(x) = 15,000(1.02)^x models the amount of money is a savings account over a period of time. What does the value 15,000 represent?

• the amount remaining in the account

• the time

• the original amount in the account

• the rate of growth

Judith puts $5000 into an investment account with interest compounded continuously. Which approximate annual rate is needed for the account to grow to $9110 in 30 years?

• .022%

• .02%

• 2.2%

• 2%

Jenny invests $25000 in an account that pays 4.75% interest compounded semi-annually. Which formula represents the money should would have in her account in t years with no further deposits or withdrawals?

• A = 25,000e^.0475t

• A = 25,000(1.0475)^t

• A = 25,000(1.0475)^2t

• A = 25,000(1 + .0475/2)^2t