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1. |
The Mendoza family just bought a house for $180,000. If the value of the house increases at a rate of 3% per year, about how much will it be worth in 10 years? |
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A. |
$258,000 |
B. |
$250,000 |
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C. |
$234,000 |
D. |
$242,000 |
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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%, daily |
B. |
7.125%, quarterly |
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C. |
7.2%, annually |
D. |
7.1%, monthly |
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Hint |
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3. |
Nancy invests $100 in one account for ten years at a 9% interest rate compounded annually, and she invests $150 in an account for 10 years at a 6% interest rate compounded semi-annually. How much money will she have in the accounts after 10 years? |
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A. |
$507.65 |
B. |
$505.36 |
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C. |
$270.92 |
D. |
$236.74 |
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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. |
$1,200 |
B. |
near $0 |
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C. |
$9,287.60 |
D. |
$161.06 |
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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. |
exponential growth |
B. |
compound interest |
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C. |
cannot be determined from given information |
D. |
exponential decay |
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Hint |
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