# Section 5.1 – Exponential Functions and Their Graphs.

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Section 5.1 – Exponential Functions and Their Graphs

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

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)

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

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

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

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