Exponential Functions Compound Interest

Marcus is buying a new Jet Ski for $12,500. He is considering 2 credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which option is better and how much will he save?

• Option A; $495.21 saved

• Option A; $573.83 saved

• Option B; $495.21 saved

• Option B; $573.83 saved

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 = 5000(0.3)^x

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

You invest $400 for 5 years and the interest rate is 4.29% each year.

• y=400(1 - 0.0429)⁵

• y=400(1+.0429)⁵

• y=400(1+ 4.29)⁵

• y=400e^0.049*5

Which function represents the table of values? 

• f(x) = 4x

• f(x) = x³

• f(x) = 4^x

• f(x) = 4^x-1

Olivia 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.

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31

• $12,749.30

• $12,657.59

• $12550.84

What is the range of this function? 

• (-∞,0)

• (0,∞)

• (-∞,4)

• (4,∞)

What is the y-intercept of the function?

• 2

• 3

• 1

• -2

This is an example of:

• Linear Growth

• Linear Decay

• Exponential Growth

• Exponential Decay