6.1 Applications of Exp. Functions & 6.2 The Natural Exp. Function Today’s Date: 1/31/17

Formula for Compound Amount A = compound amt P = original principal r = interest rate % → decimal n = # of compounds per year t = time in years

Example 1 Find the compound amount if $15,000 is deposited for 12 years in an account that pays interest at 8% compounded semiannually. (8% = .08) P = $15,000 t = 12 r = .08 n = 2 Order of Operations!!

6.2 The Natural Exponential Function y Use calc to find values -2 e -2 = 0.1 -1 e -1 = 0.4 e 0 = 1 1 e 1 = 2.7 2 e 2 = 7.4

Compounded Continuously Ex 2) Find compound amount if $15,000 is deposited for 12 years in an account that pays interest at 8% compounded continuously.

Example 3 Shroud of Turin (Pg. 353 ex 4) Find % of 14C remaining in 1988 if it was made in 1260 Approx. 91.4% of A0 remained in shroud in 1988

Homework #602 Pg. 347 49 – 53 odd, Pg. 355 1 – 23 odd Interest = Compound Amount – Original Amount = A – P Compounded quarterly: n = 4 monthly: n = 12