1.   Which equation represents exponential decay?
    A. y = 1.7(1.06)x B. y = 2.62(1.22)x
    C. y = 1.05(0.95)x D. y = 0.86(1.46)x
    Hint

  2.   Twyla puts $1000 in a savings account that pays 4% interest, compounded monthly. How much money will be in the account 3 years later if she makes no more deposits?
    A. $1120.00 B. $1127.27
    C. $1010.03 D. $1124.86
    Hint

  3.   If a $5000 piece of equipment looses value at a rate of 5% per year, how much will it be worth after 5 years?
    A. $4279.35 B. $3868.90
    C. $4011.62 D. $6381.41
    Hint

  4.   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?
    A. 7.2%, annually B. 7%, daily
    C. 7.125%, quarterly D. 7.1%, monthly
    Hint

  5.   Suppose inflation of money is at a rate of 3% per year in the United States. How much will a $1 candy bar cost in 30 years?
    A. $1.90 B. $4.32
    C. $2.43 D. $0.40
    Hint



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