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1. |
If a $5000 piece of equipment looses value at a rate of 5% per year, how much will it be worth after 5 years? |
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A. |
$4279.35 |
B. |
$4011.62 |
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C. |
$6381.41 |
D. |
$3868.90 |
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Hint |
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2. |
Lance is planning to invest $5000 for a period of 3 years. He has a choice of four different investments. Which of the combinations of interest rates and compounding below will earn the most money? |
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A. |
7.2%, annually |
B. |
7.1%, monthly |
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C. |
7%, daily |
D. |
7.125%, quarterly |
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Hint |
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3. |
Ricky invested $1000 in an account at 8% interest compounded quarterly. How much money will he have earned on the account after 7 years? |
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A. |
$741.02 |
B. |
$1,741.02 |
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C. |
$713.82 |
D. |
$1,713.82 |
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Hint |
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4. |
Each year, new computers are built with better technology, making older ones less valuable. If the computers looses value at a rate of 20% per year, how much will a $1500 computer be worth in ten years? |
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A. |
$161.06 |
B. |
near $0 |
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C. |
$9,287.60 |
D. |
$1,200 |
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Hint |
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5. |
Suppose Tyler sprayed around the house for ants. Which formula would be used to find the number of ants still alive after a certain time if the number of ants was changing exponentially? |
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A. |
cannot be determined from given information |
B. |
exponential decay |
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C. |
compound interest |
D. |
exponential growth |
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Hint |
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