Compound Interest and Exponential Functions

A collectible car has been going up in price by 10% each year. If the car is already worth $29,000, how much will the car be worth in 5 years?

• $0.29

• $2,900,000,000

• $46,704.79

• $145,000

Linear, exponential, or neither?

• Linear

• Exponential

• Neither

• All of the above

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• $565.70

• $262609.38

• $65.70

• $630.20

Given an investment of $1,500:
Which investment would have a larger balance after 5 years?

• 4% compounded monthly

• 3.9% compounded daily.

What is the x-intercept of the exponential function? 

• (0,1)

• (0,0)

• There is not one

Find the total amount in the account to the nearest cent if the interest is compounded annually.

$2750 at 8% for 2 years

• $2200

• $3207.60

• $8910

• $3222.06

What amount would need to be invested at 4% interest compounded quarterly in order to have $4500 in 5 years?

• $5490.86

• $3366.58

• $3687.95

• $3903.18

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

If $400 is invested at 35% interest, compounded continuously, for 2 years, what is the ending balance?

• $280

• $680

• $1,034.47

• $805.50

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