1.

A person invested $1,000 in an account earning a nominal interest rate of 10% per
year compounded con nuously. How much is in the account a er 5 years?

2. You buy a new car for $24,000. The value decreases by 12% each month. Es mate
the value of the car a er 2 years.

3. Your financial advisor recommends that you deposit $3500 in a fund that earns 3.5%
annual interest compounded monthly. What will be the value of your investment in 4
years?

4. Your parents start a college fund when you enter kindergarten at age 5. They invest
$14,000 in an
5. account that earns 0.8% annual interest compounded con nuously. If you are 18
years old when
6. you enter college, how much money is available in your college fund at that me?

7. You decide to buy a used car that costs $10,000. You’ve heard that the car may
depreciate at a rate of 10% per year. At that rate, what will the car be worth in 5
years?

8. Megan has $20,000 to invest for 5 years and she found an interest rate of 5%. How
much money will she have at the end of 5 years if:

o the interest rate is compounded monthly.

o the interest rate is compounded semi-annually.

9. A na onal park has a popula on of 5000 deer in the year 2016. Conserva onists are
concerned because the deer popula on is decreasing at the rate of 7% per year. If
the popula on con nues to decrease at this rate, how long will it take un l the
popula on is only 3000 deer?

10. A 529 Plan is a college-savings plan that allows rela ves to invest money to pay for a
child’s future college tui on; the account grows tax-free. Lily wants to set up a 529
account for her new granddaughter and wants the account to grow to $40,000 over
18 years. She believes the account will earn 6% compounded semi-annually (twice a
year). To the nearest dollar, how much will Lily need to invest in the account now?

11. Simplify the following:

12. For the following exercises, express each expression to a single logarithm with a
coefficient 1 using the proper es of logarithms.
13. Solve the following equa ons:

14. R8 000 is invested in an account that yields 6%

interest per year. A er how many years will the account
be worth R13709.60 if the interest is compounded
monthly?