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

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

3. 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!!

4. 6.2 The Natural Exponential Functiony
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

5. 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.

6. 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

7. 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