1. 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?

2. HW Check – 5.9

3. HW Check – 5.10

4. Quiz 5.2

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

6. 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

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

8. 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!)

9. 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

10. 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.

11. Your turn!
Work on problems 1-5.

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