| |
| |
1. |
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. |
$1127.27 |
B. |
$1120.00 |
| |
|
C. |
$1124.86 |
D. |
$1010.03 |
| |
|
Hint |
|
| |
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? |
| |
|
A. |
7%, daily |
B. |
7.1%, monthly |
| |
|
C. |
7.125%, quarterly |
D. |
7.2%, annually |
| |
|
Hint |
|
| |
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? |
| |
|
A. |
$1,713.82 |
B. |
$741.02 |
| |
|
C. |
$713.82 |
D. |
$1,741.02 |
| |
|
Hint |
|
| |
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? |
| |
|
A. |
$161.06 |
B. |
$1,200 |
| |
|
C. |
near $0 |
D. |
$9,287.60 |
| |
|
Hint |
|
| |
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? |
| |
|
A. |
cannot be determined from given information |
B. |
exponential growth |
| |
|
C. |
exponential decay |
D. |
compound interest |
| |
|
Hint |
|
|
|