-
Home
- Precalculus
- Exponential and logarithmic
- Exponential functions
Repeat the previous exercise to find the formula for the APY of an account that compounds daily. Use the results from this and the previous exercise to develop a function
for the APY of any account that compounds
times per year.
Got questions? Get instant answers now!
Recall that an exponential function is any equation written in the form
such that
and
are positive numbers and
Any positive number
can be written as
for some value of
. Use this fact to rewrite the formula for an exponential function that uses the number
as a base.
Got questions? Get instant answers now!
In an exponential decay function, the base of the exponent is a value between 0 and 1. Thus, for some number
the exponential decay function can be written as
Use this formula, along with the fact that
to show that an exponential decay function takes the form
for some positive number
.
Let
be the exponential decay function
such that
Then for some number
Got questions? Get instant answers now!
The formula for the amount
in an investment account with a nominal interest rate
at any time
is given by
where
is the amount of principal initially deposited into an account that compounds continuously. Prove that the percentage of interest earned to principal at any time
can be calculated with the formula
Got questions? Get instant answers now!
Real-world applications
The fox population in a certain region has an annual growth rate of 9% per year. In the year 2012, there were 23,900 fox counted in the area. What is the fox population predicted to be in the year 2020?
Got questions? Get instant answers now!
A scientist begins with 100 milligrams of a radioactive substance that decays exponentially. After 35 hours, 50mg of the substance remains. How many milligrams will remain after 54 hours?
Got questions? Get instant answers now!
In the year 1985, a house was valued at $110,000. By the year 2005, the value had appreciated to $145,000. What was the annual growth rate between 1985 and 2005? Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2010?
Got questions? Get instant answers now!
A car was valued at $38,000 in the year 2007. By 2013, the value had depreciated to $11,000 If the car’s value continues to drop by the same percentage, what will it be worth by 2017?
Got questions? Get instant answers now!
Jamal wants to save $54,000 for a down payment on a home. How much will he need to invest in an account with 8.2% APR, compounding daily, in order to reach his goal in 5 years?
Got questions? Get instant answers now!
Kyoko has $10,000 that she wants to invest. Her bank has several investment accounts to choose from, all compounding daily. Her goal is to have $15,000 by the time she finishes graduate school in 6 years. To the nearest hundredth of a percent, what should her minimum annual interest rate be in order to reach her goal? (
Hint : solve the compound interest formula for the interest rate.)
Got questions? Get instant answers now!
Alyssa opened a retirement account with 7.25% APR in the year 2000. Her initial deposit was $13,500. How much will the account be worth in 2025 if interest compounds monthly? How much more would she make if interest compounded continuously?
Got questions? Get instant answers now!
An investment account with an annual interest rate of 7% was opened with an initial deposit of $4,000 Compare the values of the account after 9 years when the interest is compounded annually, quarterly, monthly, and continuously.
Got questions? Get instant answers now!
Questions & Answers
it is the relatively stable flow of income
what is circular flow of income
branches of macroeconomics
what is Flexible exchang rate?
is gdp a reliable measurement of wealth
introduction to econometrics
Why is unemployment rate never zero at full employment?
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost
6% more than previous year? Provide with reasoning.
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
what is the problem of macroeconomics
Yoal
Economic growth
Stable prices
and low unemployment
Ephraim
explain inflationcause and itis degre
increase in general price levels
WEETO
Good day
How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200.
Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
nawalparasi district
from belatari
Amisha
I am Camara from Guinea west Africa... happy to meet you guys here
Sekou
ahile becheclor ho
Amisha
hjr ktm bta ho
ani k kaam grnu hunxa tw
Amisha
money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
all of you please speak in English I can't understand you're language
Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9
no Mpc is greater than 1
Y=100+.9Y+50
Y-.9Y=150
0.1Y/0.1=150/0.1
Y=1500
Kalombe
Mercy is it clear?😋
Kalombe
hi can someone help me on this question
If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output?
discuss your answer using appropriate graph.
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
Got questions? Join the online conversation and get instant answers!
Source:
OpenStax, Precalculus. OpenStax CNX. Jan 19, 2016 Download for free at https://legacy.cnx.org/content/col11667/1.6
Google Play and the Google Play logo are trademarks of Google Inc.