

1. 
Find the amount of time required for an investment to double at a rate of 8.5% if the interest is compounded continuously. 


A. 
8.15 yr 
B. 
10.43 yr 


C. 
9.97 yr 
D. 
6.04 yr 


Hint 


2. 
The Consumer Price Index between 1950 and 1996 can be modeled by the exponential function y = 20.48e^{0.0442x}, where x is the number of years since 1950. Predict the CPI in 2040. 


A. 
534.3 
B. 
1093.8 


C. 
1015.6 
D. 
992.7 


Hint 


3. 
Write the equation y = 15,000(1.02)^{x} in terms of base e. 


A. 
y = 15,000e^{x} 
B. 
y = 15,000(1.02)^{ln x} 


C. 
y = 15,000(1.02)^{e ln x} 
D. 
y = 15,000e^{0.0198x} 


Hint 


4. 
Find the amount of time needed for an investment to double at a rate of 7.1% if the interest is compounded continuously. 


A. 
11.2 years 
B. 
9.76 years 


C. 
4.3 years 
D. 
2.5 years 


Hint 


5. 
The Consumer Prime Index between 1950 and 1966 can be modeled by the exponential function y = 20.48e^{0.0442x}, where x is the number of years since 1950. Predict the CPI in 2013. 


A. 
516.0 
B. 
27.1 


C. 
20.0 
D. 
331.6 


Hint 

