1.Simplify: 2. Simplify: 3.Simplify: 4.Simplify: 5. Solve for x: Warmup 11-12.

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1.Simplify: 2. Simplify: 3.Simplify: 4.Simplify: 5. Solve for x: Warmup 11-12

Compound Interest Formula A = P(1+(r/n)) nt A = Amount earned P = Principle(amount Put in) r = interest rate n = number of times compounded PER YEAR t = time in YEARS To enter compound interest in calculator, type: P((1 + (r%/n)) (n*t), enter ( If calculator has no % button, divide r by100,put this decimal in for r in formula)

Notes – Compound Interest EXAMPLES Ex: John wants to invest $2000 at 4.25% for 3 years. How much would John end up with at the end of the 3 years if the interest was compounded monthly? Ex: What if the interest in the example above were compounded quarterly? How much would John have at the end of the 3 years? Ex Just before he decides on which investment to make, John finds a different offer. He can only get 4%, but the interest is compounded daily. How much would John have at the end of 3 years with this option? Ex: Meg wants to invest $18500 at 5.375% for 5 years. How much would Meg end up with at the end of the 5 years if the interest was compounded: a. Annually? b. Weekly? c. Semi-Annually? d. Daily?

Exponential Word Problems Practice For the following problems, use the formula: A = P 1 + r nt or A = Pe rt n If Jon has $8500 to invest for 5 years and the bank will offer a CD at 3.25%, how much would he have if the money were compounded: 1. Annually? 2. Daily? 3. Weekly? 4.Monthly? 5.Semi-Annually? Nicole has saved up $9600 towards going to college. She wants to invest it in an account that yields 4.5% interest for 4 years. How much money will she have at the end of the 4 years if the interest in compounded: 6. Weekly? 7. Daily? 8. Monthly? 9. Annually? 10.Quarterly? Nick has been given $5400 to invest towards buying his first car. The bank offers an account that yields 3.75% interest for 3 years. How much money will Nick earn if the interest is compounded: 11. Quarterly? 12. Monthly? 13. Daily? 14.Semi-Annually? 15.Weekly?

Exponential Word Problems Practice If Terri has $1500 to invest at 4.25% compounded quarterly, how many years would it take for her to have: 19. $2500 earned? 20. Doubled her money? 21. $4000 earned? If Jim has $3600 to invest at 5.5% interest compounded monthly, how many years would it take for him to have: 22. $5000 earned? 23. Doubled his money? 24.$9000 earned? If Michelle has $2800 to invest at 4.75% compounded continuously, how many years would it take for her to have: 25.$4200 earned? 26.Doubled her money? 27.$6400 earned? If Michael has $7500 to invest at 4.5% compounded continuously, how many years would it take for him to have: 28. $10000 earned? 29. $12000 earned? 30. Doubled his money?