Download presentation

Presentation is loading. Please wait.

Published byKatelynn Haycook Modified over 3 years ago

1
Compound Interest II Money, where fashion continues

2
Principal, not Principle Principal is the vocabulary for beginning balance, not Principle.

3
Review Problem $5000 is deposited in a bank at an annual interest rate of 6%. Find the balance after 7 years if the interest is: Simple interest 5000(1+0.06x7) = $7100 Compounded Monthly 5000(1+0.06/12) 12x7 = $7601.85 Compounded Continuously 5000e 0.06x7 = $7609.81

4
Solving for Principal Your family needs $15000 for your younger brother’s college tuition in 6 years. If the bank offers an annual interest rate of 8%, compounded quarterly, find the principal your family needs to invest now.

5
Solving for time You won a lottery of $100,000 and decided to deposit it into a bank account. If the bank offers 7% continuously compounded interest, how long does it take for you to become a millionaire?

6
Solving for Interest Rate Christian Dior LE 30 handbag costs $4800. You have $3000 now and want to purchase this handbag in 6 years. At what interest rate, compounded semiannually, must you get in order to place this purchase?

7
Compound Interest If a bank pays an annual interest of 6%, compounded monthly, how many years does it take to double the balance?

8
Other Applications The population of a certain type of bacteria increases at time t hours is given by the exponential function n(t) = 20e 0.05t. What is the initial amount of bacteria? n(0) = 20e 0 = 20 Find the population of the bacteria after 60 hours. n(60) = 20e 0.05x60 = 402 When does the population reach 1000? n(t) = 20e 0.05t = 1000, t = 78.240 hours

9
Carb, where fashion gets grounded Fin…

Similar presentations

OK

Big Idea Compound Interest is the way most banks and other savings institutions pay savers who put their money into their accounts. Repeated Multiplication.

Big Idea Compound Interest is the way most banks and other savings institutions pay savers who put their money into their accounts. Repeated Multiplication.

© 2018 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google