Learning Target 6DIcan explain when a situation can be modeled by exponential growth or decay, solve the problem, and interpret my solution within the context of the problem Hwang - Algebra II – 03/10/14
Day 8 V. Exponential Growth & Decay A.) Growth & Decay Models
Warm-Up I bought a car for $25,000 but its value is depreciating at a rate of 10% per year. How much will my car be worth after 8 years?
REAL LIFE • Can you imagine what it will be like when you finally graduate and land that first real job? What will you do with all that money? Well, you will need to decide how to invest it. You will have to decide what kind of car you want to drive. Along with all that freedom will come some mighty big financial responsibilities. • In at least 5 years, you will be a college graduate in the real world. You must use your knowledge of exponential growth and decay functions to make some important financial decisions.
You are going to buy your first car. You have narrowed yourchoices down to two different vehicles. The first vehicle is a three-year old Toyota with a sale price of $7000. The second vehicle is a classic 1956 Mustang someone is selling for $3125. Whichever car you buy, you planto keep until you graduate from college. The value of the Toyota will depreciate by 12% each year. If kept in good condition, the value of the Mustang will appreciate by 8% each year. How much would the cars be worth in 5 years?
Which bank should you use? • You just received $10,000 from a long lost uncle as a graduation gift. You must decide which financial institution and what type of account you will put it in. Your goal is to obtain as much interest as possible, because you have big plans for the future. • (1) Visit the websites of several financial institutions to determine which bank/account offers the best interest rates. Be aware of extra fees and required minimum balances. • (2) Use the worksheet to record your findings for the top three saving accounts. • (3) Use the highest yielding interest rate to determine what your account will be worth in 10, 25, and 40 years.
Links to go to • Bankofamerica.com • Chase.com • Usbank.com • home.capitalone360.com • Hsbcdirect.com • Wellsfargo.com • Calbanktrust.com • Cnb.com
Announcements Homework: Worksheet Due Tomorrow Quiz on Friday