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Exponential Growth, Decay & Compound Interest · Easy Worksheet 2

Exponential Growth, Decay & Compound Interest — Easy Worksheet 2

Grade 11 · MathSheets    Name: ____________________   Date: __________

Solve each problem. Round money to the nearest cent unless told otherwise.

How to solve

In y = a(b)t, a base b > 1 means growth by (b - 1) and a base 0 < b < 1 means decay by (1 - b), written as a percent. For compound interest use A = P(1 + rn)nt with n compoundings per year, or A = Pert for continuous compounding. Always write the rate r as a decimal (5% = 0.05).

Example

Does y = 400(1.2)t show growth or decay, and by what percent per period? Answer like: growth, 4%

Answer: growth, 20%

right so far
1. Does y = 400(1.25)t show growth or decay, and by what percent per period? Answer like: growth, 4%
2. $2,000 is invested at 3.5% interest compounded annually for 7 years. Find the balance, to the nearest cent.
3. A 100-mg sample of a substance has a half-life of 5 hours. How many milligrams remain after 10 hours?
4. A town has 24,000 people and grows by 2% per year. Find its population after 3 years, to the nearest whole number.
5. Does y = 400(1.3)x show growth or decay, and by what percent per period? Answer like: growth, 4%
6. $2,500 is invested at 2% interest compounded annually for 3 years. Find the balance, to the nearest cent.
7. A machine worth $15,000 loses 8% of its value each year. Find its value after 12 years, to the nearest dollar.
8. $1,500 is invested at 5% interest compounded quarterly for 9 years. Find the balance, to the nearest cent.

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