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Laabri

U2D2 Compounding e Jan24

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Last updated about 1 year ago
16 Nsɛmmisa
Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:

1
1
1

1
1
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1
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1
1
1
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1.
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2.
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3.

After 1 year, how does the amount of money in problem 2 compare to that of problem 1? What caused the difference in amounts?

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4.

To get a sense of what is happening, let’s simplify the situation to consider $1 invested at 100% per year for 1 year.

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5.

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6.

Identify the graph of (use desmos)

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7.

Identify the graph of (use desmos)

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8.

Tell whether the function represents exponential growth or exponential decay.

Try graphing this. What does the graph do?

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9.

Tell whether the function represents exponential growth or exponential decay.

You want to invest $2500 in an account to save for college. Account 1 pays 6% annual interest compounded quarterly. Account 2 pays 4% annual interest compounded continuously. Which account should you choose to obtain the greater amount in 10 years?

Compounded Quarterly (n = 4)

Compounded Continuously

1
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10.
1
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11.
1
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12.

Which account should you choose to obtain the greater amount in 10 years?

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13.

Identify the graph of (use desmos)

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14.

1
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15.

represent

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16.

Identify the graph of the function.