3.6 Exponential Growth and Decay

3.6 Exponential Growth and Decay - General Model for...

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Name___________________________________ 3.6: Exponential Growth and Decay The Compound Interest Formula A = P 1 + r n nt where A = balance P = principal r = interest rate (expressed as a decimal) t = time n = the number of times compounded Continuous Compounding Interest Formula A = Pe rt where A = balance P = principal r = interest rate (expressed as a decimal) t = time Solve. Find the balance (rounded to the nearest cent ) if $2,000 is invested at an annual interest rate of 6.3% for 5 years compounded a.) annually b.) monthly c.) continouously
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Solve. Peter borrows $3750 at a rate of 9% compounded monthly. Find how much Peter owes at the end of 3 years. Round to the nearest cent . Solve. Find out how long it takes a $2900 investment to earn $400 interest if it is invested at 8% compounded semiannually. Round to the nearest tenth of a year. Solve. Find out how long it takes a $2800 investment to double if it is invested at 9% compounded quarterly. Round to the nearest tenth of a year.
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Unformatted text preview: General Model for Exponential Growth or Decay N ( t ) = N e kt where N = the value of N at time zero k = growth or decay constant t = time Solve. The rabbit population in a forest grows at the rate of 8% monthly. If there are 250 rabbits in July, find how many rabbits (rounded to the nearest whole number) should be expected by next July. ( Hint: Use the exponential growth function N ( t ) = N e kt .) Solve. a.) Find the exponential growth function for a city whose population was 34,600 in 2001 and 39,800 in 2004. Use t = 0 to represent the year 2001. b.) Use the growth function to predict the population of the city in 2008. Round to the nearest thousand . Answer Key Testname: 3.6 EXPONENTIAL GROWTH AND DECAY a.) $2,714.54 b.) $2,738.26 c.) $2,740.52 $4907.42 1.6 years 7.8 years 652 rabbits a.) N ( t ) ≈ 34,600 e 0.04667108 t b.) 48,000 people...
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