Warm-up: 5/1/14

1 / 5

# Warm-up: 5/1/14 - PowerPoint PPT Presentation

Warm-up: 5/1/14.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

## PowerPoint Slideshow about 'Warm-up: 5/1/14' - nerice

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

### Warm-up: 5/1/14

Jess wants to buy a car but she cannot decide if she should buy a Honda or a Kia. The Honda costs \$16,000 and depreciates at an annual rate of 8%. The Kia costs \$12,000 and depreciates at an annual rate of 12%. What will each car be worth in 5 years? In 10 years? Which car should she buy and why?

2. Ariana has a choice of two investments. She can invest \$10,000 at 5% for 6 years or she can invest \$9,000 at 6.5% for 7 years. Both accounts are compounded annually. Which investment will result in a greater amount of interest earned?

Objective: To model exponential growth and decay using

The compound interest and ‘e’ as a base.

Standards:

5/1/14

Simple interest formula:

Example: warm-up

Problem #1

A = ending balance

P = Principal (or initial investment)

r = interest rate (in decimal form)

t = time (years)

Compound interest:

Compound Continuous:

What is ‘e’? Is Euler’s Number

Make an x-y table and

Input the following values

Using a calculator. What do you

Observe?

1

10

100

1000

1000000

Ray put \$2,000 into a savings account. The interest on the account is 12% per year compounded quarterly. He wants to put the money away for 7 years. Using the compound interest method, how much will Ray have at the end of that time period?

In four years, Ben wants to have \$5000 available to make a down payment on a new car. If the bank offers 4.25% interest compounded daily, how much should Ben invest in a savings account now so that he has the money for his car?

An amount of \$2,340.00 is deposited in a bank paying an annual interest rate of 3.1%, compounded continuously. Find the balance after 3 years.

Examples: