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Section 5.1 – Exponential Functions and Their Graphs

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Warm – Up Compute each of the following on your graphing calculator. Round ALL answers to three decimal places.

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Compound Interest (Periodically) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) n – Number of times compounded Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years)

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Find the compound interest on $100 at 3% semiannually for 2 years Compound Interest (Periodically) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) n – Number of times compounded $100 0.03 2 2 Total Interest $106.13 - $100 $6.13

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Compute the compound interest on $200 at 4% continuously for one year. Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) $200 0.04 1 Total Interest $208.16 - $200 $8.16

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Find the amount of money in an account if $1000 is compounded continuously for 15 years at a rate of 2 percent. Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) $1000 0.02 15

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Find the amount of money if $1000 is invested: a)Compounded continuously for 3 years at 2% b)Compounded quarterly for 3 years at 2% Note: Graphs are Next

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