Compound Interest Worksheet: Exponential Growth and Population Growth - Prof. Debra Wood, Assignments of Mathematics

Download Compound Interest Worksheet: Exponential Growth and Population Growth - Prof. Debra Wood and more Assignments Mathematics in PDF only on Docsity! 1 WS 14 Exponential Growth Name: ______________ Due: # Round dollar amounts to the nearest dollar or people to the nearest person. Write rates and yields to four decimal places (no rounding), then write as a percent rounding to 2 decimal places. Show all work. Do not round until the very end of the problem. Formulas: 1 n t r F P n ⋅   = +    1 1 n r y n   = + −    r t F Pe ⋅ = 1ry e= − 1. a. What is the value of $56,500 after 4.5 years compounded monthly at a rate of 8%? b. What is the effective annual yield? 2. a. What is the value of $450,000 after 7 years compounded quarterly at a rate of 2.1%? b. What is the effective annual yield? 3. What rate, r, compounded monthly will yield, 6.9% 4. What rate, r, compounded quarterly, will yield 4.12%? Compound Interest Worksheet 2 5. a. Find the population size of 200,500 people after 4 years and 3 months, if the growth rate 7.2% compounded continuously? b. What is the yield on this growth rate? 6. Find the annual rate, r, that produces an effective annual yield of 4.4% when compounded continuously. 7. How long, to the nearest month, will it take for the population of a small town to grow from 67,000 to 99,000 people when compounded continuously at 7.8%? 8. A certain bank is noticing that the number of customers is declining at a continuous rate of 5.3%. (this rate then is a negative number). If a bank has 350,000 customers presently and predicts that the customers will decrease to 225,000 after a period of time. How long will this take? (Estimate to the nearest month)