Warm Up 1) The value of a $24,500 car depreciates at a rate of 9% per year. How much is the car worth in ten years? 2) A population of 1,500 ants triples.

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Presentation transcript:

Warm Up 1) The value of a $24,500 car depreciates at a rate of 9% per year. How much is the car worth in ten years? 2) A population of 1,500 ants triples every 6 months. How many ants will there be in 4 years?

HW Check – 5.9

HW Check – 5.10

Quiz 5.2

COMPOUND INTEREST These problems are about what can happen to your money, so it should be of interest to you!

COMPOUND INTEREST FORMULA annual interest rate (as a decimal) Principle (Starting amount) time (in years) amount at the end number of times per year that interest in compounded

What can n be? Interest compounded…. What is n? Annually Semiannually Quarterly Monthly Daily

MAKE sure you the EXPONENT in ( )!!! (when you put in the calculator!) EX 1: Find the amount that results from $900 invested at 6% compounded annually after a period of 3 years. 1 (3) .06 900 1 MAKE sure you the EXPONENT in ( )!!! (when you put in the calculator!)

EX 2: Find the amount that results from $500 invested at 8% compounded quarterly after a period of 2 years. 4 (2) .08 500 4

EX 3: Suppose you invest $32,000 into an account that has an annual interest rate of 5.2% compounded quarterly for 3 years. Find the total amount after 3 years.

Your turn! Work on problems 1-5.

Coming up… Homework tonight – 5.11 Tutoring in 2622 today QUIZ Friday!