Exploring Exponential Growth, Decay, and Compound Interest

What does exponential growth involve in terms of formula components?

• Accrued value, principal amount, and interest rate

• Principal amount, interest rate, and number of periods

• Initial amount, decay rate, and time

• Initial amount, growth rate, and time

In the example of Oakview High School, what was the annual growth rate of student enrollment?

• 1.0%

• 1.5%

• 2.0%

• 2.5%

How is the value of a car affected by exponential decay over time?

• It increases by a fixed percentage

• It decreases by a fixed percentage

• It remains constant

• It fluctuates based on market conditions

What is the formula for compound interest?

• Accrued value equals principal times (1 plus interest rate divided by number of compounds) raised to the power of compounds times years

• Interest rate times principal plus number of compounds

• Principal times (1 plus interest rate divided by number of compounds)

• Principal plus interest rate divided by number of compounds

What was the initial amount used in the compound interest example involving Laura?

• $10,000

• $12,000

• $20,000

• $15,000

How often was the interest compounded in Laura's investment scenario?

• Quarterly

• Annually

• Semi-annually

• Monthly

What was the final amount in Laura's account after 5 years with compound interest?

• $17,831.37

• $18,000.00

• $19,500.00

• $20,000.00

What is the effect of compounding frequency on the accrued amount in an investment?

• Higher frequency results in higher accrued amount

• Only the principal amount affects the accrued total

• No effect, as the interest rate remains constant

• Higher frequency results in lower accrued amount

What was the interest rate in the investment example with semi-annual compounding?

• 3.5%

• 4.5%

• 3.9%

• 4.0%

After 10 years, how much interest did Bob earn from his savings account with bi-monthly compounding?

• $24.98

• $50.00

• $75.00

• $100.00