Select 2 of the 3 work problems in this section. Use the approprate formula below:
3 points
3
Question 13
13.
An investment of $12,000 is losing value at a rate of 4% each year. Write and exponential function to model the situation, then find the value of the investement after 9 years. (round your answer to 2 decimal places)
3 points
3
Question 14
14.
A baseball card that was valued at $200 in 1980 has increased in value by 7% each year. Write a function to model this situation, then find the vlaue of the card in 2016.
3 points
3
Question 15
15.
Kevin borrowed $32,500 to purchase a new car. If the rate on the loan is 6% compounded semi-annually (twice per year), how much will he pay in total over the course of the 5 year loan?
4 points
4
Question 16
16.
OPTIONAL: Logan is taking out a loan to buy a $4000 ring for his girlfriend. He has the two finance options listed below. Which option should he choose? Justify your answer by giving the amount of money Logan will save:
Option A- a five year loan with a 7% interest rate compounded quarterly
Option B- An eight year loan with a 5.5% interest rate compunded annually.