Constant and Variable Scenario 1

Rates of Change
Yosef puts $10 from every paycheck into a jar in
his closet to save longterm. How has the cash
balance in the jar changed over time?

Constant/Variable/Not Enough Information?

For this part of the Group Assignment, you ANSWER: Constant
will simply be analyzing different scenarios
to determine if they have constant or Why? He puts in the same amount
variable rates of change, or if there isn’t from his paycheck.
enough information to tell. Then explain
why you answered like you did.

Please see your textbook if you have any Scenario 4

questions about the difference between
variable and constant rates of change.
African Elephant Numbers Plummet 30 Percent,
Landmark Survey Finds. How has the African
Elephant population changed over time?

Constant/Variable/Not Enough Information?

ANSWER: Not Enough Information.

Why? There was no information about

the beginning of the data survey which
makes it hard to determine.
 Scenario 1
$10 from every paycheck into a jar in
o save longterm. How has the cash
he jar changed over time?
Variable/Not Enough Information?
Constant
puts in the same amount
paycheck.
Scenario 4
phant Numbers Plummet 30 Percent,
urvey Finds. How has the African
opulation changed over time?
Variable/Not Enough Information?
Not Enough Information.
ere was no information about
ning of the data survey which
hard to determine.
Scenario 2
Carlos and Sofia earn 3.7% interest annually
from their savings account. How has the balance
in their savings account changed over time?
Constant/Variable/Not Enough Information? Constant/Variable/Not Eno
ANSWER: Variable ANSWER: Constant
Why? Variable, because the interest Why? There is a specific
increases by a percentage, which added at every period o
increases variably every year.
Scenario 5
The urban population of Bangkok Thailand grew
from 7.8 million people to 9.6 million between
2000 and 2010, a relatively modest annual
growth rate of 2.0%. It has the ninth largest
population in East Asia. How has the population
of urban Bangkok changed over time?
Constant/Variable/Not Enough Information?
ANSWER: Variable
Why? Here we have the rate of increase,
and the comparism of the period being
measured.
 Scenario 3

Every week all spring the price of gas has risen

by 2 cents. How has the price changed over
time?

Constant/Variable/Not Enough Information?

ANSWER: Constant

Why? There is a specific amount which is

added at every period of time.
Scenario Questions
How much money does Alihave in his acc

Ali and Bruno were born the exact same day. Their $803,491.48
retirement accounts average 7% APR and compound How much money does Bruno have in his
monthly. 65?
Ali: When Ali graduated from college at age 24, he began $609,985.50
saving for retirement. He put $500 per month into a 401K Which one has more in their accounts?
account. After 11 years he stopped paying into the
account, but he left the money in the account where it ALI
earned interest for the next 30 years. Who deposited more money into their ac
BRUNO
Bruno: After college Bruno worked hard but did not start
to save for retirement until he was 35 years old. He put
$500 per month into his 401K savings account for the next
30 years.

ALI
Rate 7% FV 1 $98,994.85
Year1 11 FV 2 $803,491.48
Year2 30 $66,000.00
PMT $ 500.00

h money does Alihave in his account at age 65?
1.48
h money does Bruno have in his account at age
5.50
e has more in their accounts?
osited more money into their account?
Work
Use the FUTURE VALUE (FV) function to answer the
questions. If you have questions about the FV function,
refer to the textbook.
Two hints:
1. Can one FV Function model how much money Ali will
have at age 65?
2. The ‘pv’ part of the FV Function is where you put in the
amount originally deposited in an interest bearing
account, over and above the monthly amount.

BRUNO
$609,985.50
$180,000.00
Scenario

Carolina and Evangeline are new freshmen. Each woman $6250

decided to get the maximum student loan for their first
semester, and neither of them take out any more student
loans for the rest of their eduction. Both loans have an APR
of 4.5% and were for $6250.
$7,649.98
Carolina: Carolina's loan is a Subsidized Student Loan. This
means the federal government pays the interest on the
loan until 6 months after Carolina leaves school. This loan is
need-based. Rate
Evangeline:Evangeline’s loan is an Unsubsidized Student Loan
Loan. Interest begins to accrue as soon as the loan is taken Evangeline
out. This loan in not need-based. Carolina
Questions Work
If Carolina graduates in 4 years how much money does she As needed, use the Future Value (FV
owe on her loan 6 months after graduation? what Carolina and Evangeline owe 6
graduation.
$6250

If Evangeline graduates in 4 years how much money does

she owe on her loan 6 months after graduation?
$7,649.98

4.5%
$6,250.00
($7,649.98)
($6,250.00)
 d, use the Future Value (FV) function to calculate
olina and Evangeline owe 6 months after
on.
 Save this file and upload it to the W09 Group
Assignment Submission folder in I-Learn.

Then, as a group, answer the W09 Group Assignment

Quiz.