Exponential and Compound Interest Practice

You invest $400 for 5 years at an interest rate of 4.29% each year. Which equation models this?

• y=400(1 - 0.0429)⁵

• y=400(1+.0429)⁵

• y=400(1+ 4.29)⁵

• y=400e^0.049*5

Classify the model as Exponential GROWTH or DECAY.
A=1200(.85)⁶

• Growth

• Decay

Jack invests $4, 886 in a retirement account with a fixed annual interest rate of 6% compounded continuously. What will the account balance be after 13 years?

• $10,658.67

• $12,017.62

• $11,149.27

• $11,317.77

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

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $1,923.23

• $10,138.07

• $6,701.28

• $800.26

Hugo opened a savings account and deposited $800 as principal. The account earns 4% interest, compounded continuously. What is the balance after 5 years?

• $832.00

• $977.12

• $973.32

• $960.00

You want to save $5,000 for future family vacation.  If the bank pays 4.3% compounded monthly for 3 years, then how much will you need to invest to reach your vacation goal?  

• $307,042,791

• $5,000

• $3,250

• $4,395.89

Logarithmic functions are the inverse of...

• Linear Functions

• Exponential Functions 

• Quadratic Functions 

• Polynomial Functions 

Henry invested $15,000 in an account that pays 5% interest compounded continuously. How much is in his account after 5 years? 

• $15,500.50

• $19,260.38

• $19,260.40

• $21,500.25

Write the equation of an exponential function that passes through the following points: (7, 12) and (8, 25).