Exponential Equation and Compound Interest

Which of the following functions shows an initial amount of $15 and an increase of 35% each year?

• y = 15(35)^x

• y = 15(1.35)^x

• y = 15(0.35)^x

• y = 35(1.15)^x

Suppose you deposit $3000 in a savings account that pays interest at an annual rate of 4%. If no other money is added or withdrawn from the account, how much will be in the account after 10 years?

• $3122.18

• $4994.50

• $4440.73

• $86,776.40

What type of function is f(x)=2(1/7)^x ?

• Exponential Growth

• Linear

• Exponential Decay

• None of the Abovee

Suppose a culture of bacteria begins with 5000 cells and dies by 30% each year. Write an equation that represents this situation.

• y=5000(0.7)^x

• y=30(5000)^x

• y=5000(1.3)^x

• y=5000x^x

Your $440 gets 5.8% interest compounded annually for 8 years. What will you have in 8 years?

• $250.78

• $690.78

• $1,130

• $940.78

$6500 is invested in a bank account that earns 2.6% interest, compounded monthly. Write an expession that represents the amount of money in the accout after 5 years.

Mathematical Equivalence

ON

Emily would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years. (Round your answer to the nearest hundredth, because it is money.)

Mathematical Equivalence

ON

Which of the following equations represent an initial account that contains 3,000 with an interest rate of 1.5% compounded annually for 4 years?

What is the correct function that models an investment of $2000 compounded monthly with an interest rate of 3.4% ?

V(t) is the value, t is time

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• 
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Matt earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually (n=1). What will be his balance after 15 year?

• $827.52

• $831.10

• $839.45

• $846.80