Page 1 of 4

a. P = P0(A)t
1.5 t
P = 1000(1 + )
100
P = 1000(1.015)t
so, P(8) = 1000(1.015)8 = 1126.49 dollars
b. P = P0 e kt
1.5
P = 1000e 100 t
P = 1000e 0.015t
so, P(8) = 1000(e 0.015*8) = 1127.5 dollar

———————————————————————————————————-

P = P0e kt
1.5
P = 15000e 100 t

t = ? when P = 20000 :

20000 = 15000e 0.015t

20000
= e 0.015t
15000
4
= e 0.015t
3
4
lne 0.015t = ln( )
3
0.015t * lne = 0.287682
t = 19.1788
so, t = 20 years
 Page 2 of 4

P0 = 11.986 million barrels per day at year 2015

P(3) = 13.525 million barrels per day at year 2018

= P0(A)t
let P
P = 11.986(A)t
P(3) = 13.525 :
13.525 = 11.986(A)3
13.525
A3 = = 1.1284
11.986
3
A = 1.1284 = 1.04109
at 2025, t = 10 :
P = 11.986(1.04109)10 = 17.929 million barrels per day

———————————————————————————————

t = 10, P(10) = 12000 dollars and rate = 9%

P = P0(A)t
let P0 is initial investment.
9 10
12000 = P0(1 + )
100
12000 = P0(1.09)10
12000 = P0(1.09)10
12000 = P0(2.36736)
P0 = 5068.94 dollars
 Page 3 of 4

P0
this is exponential decay. and P(3) =
2
P = P0(A)t
P0
= P0(A)3
2
(A)3 = 0.5
3
A = 0.5 = 0.793701

P = P0(0.793701)t
P(1) = P0(0.793701)1
P0 − P(1) P − 0.793701P0
Percentage remains = * 100 % = 0 * 100 % = 20.6299%
P0 P0
———————————————————————————————————

P = P0(A)t

P = 10000(1 + 0.03)8 = 12667.7 dollars

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a. option 1 is the best. if you get money now, and invest all, in a year, you will get interest from
$2000.
b. option 1 : 2000(e 0.05*1) = 2102.54 dollars
option 2 : 1000+1000(e 0.05*1) = 2051.27 dollars
option 3 : 2000 dollars
c. option 1 : $2000
option 2 : 1000 = P0(e 0.05*1)
1000
P0 = = $951.229
e 0.05
so 1000+951.229 = $1951.229

option 3 : 2000= P0(e 0.05*1)

2000
P0 = 0.05 = $1902.46
e