Growth and Decay Exponential Functions

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?

• $176,783.29

• $424,527.63

• $57,357.75

• $532,041,076.80

Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawls were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 

• 2000(1+0.02)¹³

• 2000(1-0.02)¹³

• 2000(1+0.02)¹⁶

• 2000(1-0.02)¹⁶

The value of a car is $15,000 and depreciates at a rate of 8% per year. What is the decay factor?

• ^.08

• ^1.08

• .92

• 8

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

Classify the model as Exponential GROWTH or DECAY.

A=10(1.01)3

• Growth

• Decay

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $2,225.54

• $1,225.54

• $22,255.40

• $3,225.54

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

• 839

• 4309

• 14327

• 7680

You invest $400 at an interest rate of 4.29% that compounds monthly. Which equation models this?

• y=400(1+ 4.29)^t/12

• y=400(1+.0429/12)^12t

• y=400e0.049*5

• y=400(1 - 0.0429)^t

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, what is an equation to model this?

• f(x) = 3000(1.029)^4t

• f(x) = 3000(1.29)^t

• f(x) = 3000(1.029/4)^4t

• f(x) = 3000(.971)^4t

Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. Estimate the value of your vehicle in 3 years. What is the equation that models this problem?

• y= 7650(.86)3

• y= 7650(.14)3

• y= 7650(1+.86/3)¹

• y= 7650(3)¹⁴