Warm Up If you deposit $10,000 into an account earning 3.5% interest compounded quarterly; How much will you have in the account after 15 years? How.

Slides:

Advertisements

Similar presentations

 In 1994, the number of weekly bus passes sold by City Transit was 98,481 and had been growing at a rate of approximately 3.8% per year. How many passes.

Advertisements

Homework Lesson Handout #5-27 (ODD) Exam ( ): 12/4.

Simple Interest and Compound Interest.

 If you deposit $10,000 into an account earning 3.5% interest compounded quarterly;  How much will you have in the account after 15 years?  How much.

6.6 The Natural Base, e Warm-up Learning Objective: To evaluate natural exponential and natural logarithmic functions and to model exponential growth and.

Exponential Growth and Decay. Objectives Solve applications problems involving exponential growth and decay.

7.3B Applications of Solving Exponential Equations

Compound Interest. Compound Interest (except continuous) When the bank pays interest on both the principal and the interest an account has already earned,

1 Project 2- Stock Option Pricing Mathematical Tools -Today we will learn Compound Interest.

Happy Wednesday Please do the following: Pick up the worksheet from the front table. HW #8: p 306 # 53, 57, odd, 91, 103, 107 Update: Test.

CHAPTER 5 LESSON 5 Exponential Functions and Investing.

Table of Contents 5. Section 5.8 Exponential Growth and Decay.

ANNUAL PERCENTAGE YIELD APY Lesson Vocabulary Annual Percentage Yield (APY)- Also called effective annual yield is the rate of return on your investment.

EXAMPLE 5 Find the balance in an account

MAT 142 Lecture Video Series

Algebra 2/Trigonometry Name: __________________________

Section 6.7 Financial Models.

Modeling Exponential Functions

Compound Interest.

Section 5.7 Financial Models

Section 4.7 Compound Interest.

Exponential Functions, Growth and Decay

Happy Friday Eve! Do the following: Warm-up  Do on whiteboard HW #6:

INTEREST RATE FORMULAS

Unit 2 - Day 5 Compound Interest

Exponential Growth and Decay

Exponential Growth and Decay

Compound Interest.

Warm-up: THE RULE OF 72 There is a quick way to estimate the time it takes for an  investment compounded annually to double in value. This  method is called.

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you! 

Exponential Growth and Decay

Module 12-3 Objective Solve problems involving exponential growth and decay.

6.1 Exponential Growth and Decay Functions

Lesson 34 – Modeling with Exponential Functions

Lesson 2:____ Section 3.1 Exponential Functions

Do Now If you did not finish it yesterday, put your worksheet into the basket In the standard form y = a•bx, what does each variable represent? If Ms.

SIMPLE AND COMPOUND INTEREST

Exponential Functions

CDs and Annual Yield Lesson 7.3.

Warm Up Find a partner at your table.

6.4 Exponential Growth and decay

6.4 Exponential Growth and Decay

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you! 

5.5 Bases Other Than e and Applications

3.5 Exponential Growth & Decay

Warm Up Find a partner at your table.

Compound Interest.

Exponential Equations Applications.

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you! 

Warm Up 100 grams of a compound with a half-life of 5000 years

Unit 6 – Exponentials & Logs Exam Review

7.5b - Applications of Logarithms

Warm Up Find a partner at your table.

The Number e L.O. All pupils recognise what e is

Which Equation? $1000 is invested in an account that accrues 12% annual interest. A radioactive isotope has a half-life of 12 hours. $500 is deposited.

Warm Up 1) The value of a $24,500 car depreciates at a rate of 9% per year. How much is the car worth in ten years? 2) A population of 1,500 ants triples.

Section 4.8: Exponential Growth & Decay

Section 6.7 Financial Models

Exponential Growth and Decay

Exponential and Logarithmic Models

HOW TO MAKE MONEY WITHOUT DOING ANY WORK

Section 4.8: Exponential Growth & Decay

6.1 Exponential Growth and Decay Functions

5.4 Applications of Exponential Functions

CDs and Annual Yield Lesson 25.

Compounded and Continuous Interest

3-6 Continuous Compounding

C2D8 Bellwork: Fill in the table Fill in the blanks on the worksheet

Annual Percentage Yield APY

C2 D6 Bellwork: Solve for x. Be able to give the exact and approximate answers. 2) 3) 1) total: +1.

Presentation transcript:

Warm Up If you deposit $10,000 into an account earning 3.5% interest compounded quarterly; How much will you have in the account after 15 years? How much more money will you have after 15 years if you compound the money daily? Howard County Public Schools Office of Secondary Mathematics Curricular Projects has licensed this product under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

Compounding Interest Activity With a partner, complete the following. Given $1 invested at 100% for 1 year, find the following compounds. Round all answers to the ten-thousandths. Annually? Quarterly? Monthly? Weekly?

Continued… Given $1 invested at 100% for 1 year, find the following compounds. Round all answers to the ten-thousandths Daily? Hourly? Every minute? Every second? What do you notice about the answers as you compound more frequently? What special number is it?

Continuously Compounding Growth and Decay Examples from science/nature. http://www.dnatube.com/video/12203/Rapid- Bacterial-Growth Example: If a bacteria doubles every 20 minutes, What is its constant or rate of growth? If it continues to grow at that rate how much bacteria will be present in 4 hours?

Practice If your account compounds quarterly at 6.75%; How much will you have to invest to have $8,000 in 15 years. How much if you compound continuously? If a radio-active material has a half life of 65 years; How much will be present in 10 years? How long until a 100 mg sample decays to 5 mgs?

Summary How do you tell which compounding formula to use? What types of things compound continuously? If you deposited $10,000 in an account earning 2.75% compounded quarterly; How much money will you have in 15 years? How much more would you have if it was compounded continuously? If the half-life of a toxic chemical is 75 years, how long until a 500mg sample has reduced to 35 mg?