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              2.1  Checkpoint Exponential Functions 2

1. Determine the amount of money you would have if you invested $3,000 in an account that gives 6.5% interest compounded:

a)    annually

b)   semi-annually

c)    quarterly

d)   monthly

e)    daily

2. Determine the amount of money you would have if you invested $ 3,000 in an account that compounds interest monthly if the interest rate was:

a)    2.5 %

b)   4 %

c)    5.5 %

d)   8 %

e)    10.5 %

3. Suppose that you need $5,000 in 3 years and found an account that

            will give you 8 % interest compounded quarterly.  How much would you need

            to invest now so that you will have that $5,000 in three years?

4. A one-page letter is folded into thirds to go into an envelope.  If it were possible to repeat this kind of tri-fold 20 times, how many miles thick would the letter be?  (A stack of 150 pieces of stationery is one inch thick:  1 mile = 5280 feet.)*

5. The population of a small town increases by a growth factor of 1.152 over a two-year period.

a)    By what percent does the town increase in size during the two-year period?

b)   If the town grows by the same percent each year, what is its annual percent growth rate? *

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