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Warmup 11-13

Simplify:

2. Simplify:

Simplify:

Simplify:

Simplify :

Simplify:

Warmup 11-13

Simplify:

2. Simplify:

Simplify:

Simplify:

Simplify :

Simplify:

Warmup 11-13

Compound Interest Part 2(CONTINUOUSLY COMPOUNDEDINTEREST)

New Formula: A = Pert

A = Amount EarnedP = Principle(amount INVESTED)r = Interest ratet = time in years

To enter this formula into calculator:

P, 2nd ln(for e),(r*t) IMPORTANT:If the word investsis in problem,use normal formula.

If the word needs is in problem, use the formula, P = A ertNotes Compound Interest Formula Pert EXAMPLESEx. Suppose a person had $3600 to invest at 3.5% for 6 years. How much would they have at the end of the 6 years if the interest were compounded continuously?

Ex. Mary won $7500 in a lottery game. She wants to invest it in an account that earns 5.75% for 4 years. If the interest is compounded continuously, how much would Mary have in the account after 4 years?

Ex. Jamie has inherited $9000 from her grandparents. She wants to invest the money in an account earning 3.125% interest for 4 years. If the interest is compounded continuously, how much money will Jamie have in the account after 4 years?

Pert formula part 2 Examples

Ex. Janice needs to earn $10000 in 8 years from her investments. How much money would she need to invest to make this much at 4.25% interest? (interest is compounded continuously)

Ex. How much would Janice need to invest in the account above if she could wait 12 years?

Ex. Jack needs to earn $4800 to put towards the purchase of a car. If he can get an account that earns 5.5% interest compounded continuously, how much does he need to invest for:4 years?7years?10 years?Exponential Word Problem Practice Part 2 1. Tim has $4500 to invest. He can get an account that earns 4.75% interest compounded continuously for 5 years. How much money will be in his account at the end of the 5 years?

2. Terri has $9400 to invest. She can get an account that earns 3.5% interest compounded continuously for 3 years. How much money will be in her account after 3 years?

Steve won $15000 in the lottery. He wants to invest it in an account that earns 2.875% interest for 6 years. If the interest is compounded continuously, how much money will he have after 6 years?

Amanda won $3200 in a radio contest. She wants to invest the money in an account earning 3.25% interest for 8 years. If the interest is compounded continuously, how much would she have in her account after 8 years?

Jesse has saved $1800 from his last several birthdays. He would like to invest the money in an account that earns 5.375% interest for 7 years. If the interest is compounded continuously, how much money will Jesse have at the end of the 7 years?

Jessica has earned $24800 from the sales of her books. She wants to invest the money in an account that earns 3.5% interest for 10 years. If the interest compounds continuously, how much will Jessica have in her account after 10 years? Exponential Word Problem Practice Part 27. Kaitlyn has $2900 in credit card debt. Her credit card charges 11.75% interest, compounded continuously. How much will she owe on the balance if she does not make a payment for: a. 9 months?b. 2 years? c. 4 years?

8. Justin has $4200 in credit card debt. His card has an interest rate of 12.25% compounded continuously. How much would he owe if he didnt pay on the balance for:a. 6 months?b. 1year? c. 3 years?

Jane needs to make $6300 to help pay for a car. She is investing some money in an account that earns 4.125% interest that is compounded continuously. How much money must she invest if she is willing to wait: a. 3 years?b. 5 years?

Kristen needs $2900 to pay for a computer. She is investing some money she has saved in an account that earns 3.875% compounded continuously. How much does she need to invest if she can wait: a. 2 years? b. 6 years?

Jeremy needs $4200 to help put down money on a house. He is investing some money in an account that earns 5.25% interest, compounded continuously. How much does he need to invest to reach his goal if he can wait: a. 4 years? b. 8 years?

12. Andrea needs $10000 to help pay off some debts. She is investing some money in an account that earns 3.125% interest, compounded continuously. How much would she need to invest to reach this goal if she can wait: a. 5 years? b. 10 years? Ticket out the door 11-13Exponential word problems part 21. Mark has $2400 to invest. He can get an account for 5 years that earns 3.875% interest, compounded continuously. How much would he earn at the end of the 5 years?

Michelle has $7200 she wants to invest. She can get an account earning 3.125% interest for 4 years. If the interest is compounded continuously, how much would Maggie have in her account at the end of the 4 years?

Jeremy needs $7500 to put down on a car. If he can get an account earning 3.75% interest compounded continuously, how much would he need to invest if he could wait 3 years?

Peg needs to make $5400 to put towards a down payment on a house. If she can get an account earning 5.25% interest compounded continuously, how much would she need to invest if she can wait 5 years?