1. Algebra II 8-1 (2)

2. Starter: Graph: y = 2(4) x+3 -2 Asymptote: Domain: Range:

3. Example 2: Graph: y = ½(3) x – 1 Asymptote: Domain Range:

4. Example 3: Graph: y = -3(2) x – 1 Asymptote: Domain: Range:

5. Exponential Growth Models The exponential growth equation is:  y = a(1 + r) t where: a = r= and t =

6. Example 8: In January 1993, there were about 1,313,000 Internet hosts. During the next 5 years, the number of hosts increased by about 75% each year: a. Write a model giving the number h (in millions) of hosts t years after 1993. How many hosts were there in 1996? b. Graph this model:

7. Compound Interest The compound interest formula is: ▫A = P(1 + r/n) nt where: A = P = r = n = and t =

8. Compound interest Example You deposit $1000 in an account that pays 8% annual interest. Find the balance after 3 years if the interest is compounded: a. Annually: b. Quarterly: c. Monthly:

9. On your own: An investment opportunity pays 6% interest annually. If you invest $2000, compound quarterly for 5 years, how much interest will you accumulate?

10. Homework Section 8-1: Page 469 #