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