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2.1 Exponential Growth: Compound Interest Homework |
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Solve each of these |
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1. Write a formula for an exponential function with initial value of 2,500 and a growth factor of |
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a) 1.25 |
b) 1.05 |
c) 1.18 |
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2. Write a formula for an exponential function with initial value of 4,000 and a growth factor of |
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a) 2.5 |
b) 3.05 |
c) 4.1 |
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3. Write a formula for an exponential function with initial value of 100 and growth rate (every time period ) of |
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a) 2.5% |
b) 3.1% |
c) 100% |
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4. Write a formula for an exponential function with initial value of 5,000 and growth rate (every time period) of |
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a) 5% |
b) 8% |
c) 200% |
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5. How much money would be in an account after 20 years if you deposited $15,000 at each of the following interest rates compounded annually? |
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a) 1.2% |
b) 28% |
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c) 6.56% |
d) 4.75% |
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6. How much money would be in an account after 15 years if you deposited $2,500 at each of the following interest rates compounded quarterly? |
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a) 2.1% |
b) 8.2% |
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c) 6.5% |
d) 5.74% |
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7. How much money would be in an account after 20 years if you deposited $3,000 in a mutual fund which compounds interests 2.2% |
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a) annually |
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b) semi-annually |
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c) quarterly |
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d) monthly |
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e) daily |
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8. How much money would be in an account after 2 and a half years if you deposited $25,000 in a mutual fund which compounds interests 1.1% |
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a) annually |
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b) semi-annually |
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c) quarterly |
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d) monthly |
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e) daily |
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9. Zach is beginning high school and has $5000 in his savings account. How much more does he need to add to the $5000 so that a CD paying 5% compounded monthly returns $10,000 when he finishes college in 8 years? |
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10. Find the effective annual yield for an account that gives 2.75% nominal interest compounded semi-annually. |
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11. Find the effective annual yield for an account that gives 9% nominal interest compounded daily. |
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12. Suppose you deposit $1000 into an account that compounds interest 4% every 6 months. Write a formula for an exponential function representing this scenario if |
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a) t represents time in years of the investment. |
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b) t represents the number of 6 month periods of time of the investment. |
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13. The black squirrel population in 10 years and is growing exponentially. What is the yearly rate of increase? |
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14. Suppose you deposit $5000 into an account that compounds interest 6% every |
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year. Write a formula for an exponential function representing this scenario if |
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a) t represents time in years of the investment. |
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b) t represents the number of 6 month periods of time of the investment. |
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