5.3 Application of Exponential Functions. Continuously Compounded Interest: A = Pe rt A = account balance r = interest rate (as a decimal) t = time in.

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Presentation transcript:

5.3 Application of Exponential Functions

Continuously Compounded Interest: A = Pe rt A = account balance r = interest rate (as a decimal) t = time in years P = principal

Ex. 1If $2500 is invested at 11.5% interest, what is the value of the investment after 10 years if it is compounded: a) Annuallyb) Monthly c) Quarterlyd) continuously

Ex. 2: A fruit fly population triples every 8 hours. Today there are 20 fruit flies. How many fruit flies will there be in 3 days?

Ex. 3: A car valued at $25,000 today will decrease in value by 18% each year. When will the car’s value be $8000?

Ex. 4: The half-life of Radium is 1620 years. Find the rule of the function that gives the amount remaining from an initial quantity of 100 milligrams of Radium after x years. a) How much Radium is left after 800 years? b) After 1600 years? c)After 3200 years?