Exponential Equations in Financial Contexts — Quiz Answers

A potential buyer is using anticipated appreciation as one of the deciding factors in a purchase. Experts in the area estimate annual property value increases of 6.9% One of the properties is valued at $⁢185,550 What values complete the equation to determine the estimated time it will take this property to reach $⁢413,231.50 ?

A luxury car depreciates an average of 11.5% annually. The purchase price of the car was $⁢81,789 What values complete the equation to determine the number of years, t , it will take for the car to reach a value of $⁢50,172.76 ?

An investor is putting $⁢10,000 into a certificate of deposit. It compounds interest twice a year at a rate of 6 percent Which equation can the investor use to determine how long it will take to reach a balance of $⁢10,612.08 ?

A certificate of deposit that compounds interest daily, or 365 times a year, has an advertised annual interest rate of 2.75% The advertisement also promises a final balance of $⁢25,346.11 on an investment of $⁢25,000 Which equation can be used to find the length of time in years of the investment?

A customer invests $⁢45,000 in an account that compounds 4 point 9 percent interest monthly. The customer wants to change the investment when the account reaches $⁢50,716.73 Use a graphing calculator and the equation 50,716.73=45,000⁢(1.049)^x , where x is the time in years it will take to reach this amount. Solve for x , and round to the nearest tenth if necessary.

An investment has an annual interest rate of 3.6% and is compounded monthly. One investor starts with $⁢45,000 , and an adviser recommends reviewing the investment when the value reaches $⁢46,229.68 Which equation can the investor use to find the length of time before the account grows to this amount?

A car depreciates an average of 7.5% annually. The purchase price of the car was $⁢28,946 What values complete the equation to determine the number of years, t , it takes the car to reach a value of $⁢25,775.05 ?

A commercial truck has a purchase price of $⁢56,902 and a depreciation rate of approximately 2% per month. Given the equation 32,978.55=56,902⁢(0.98)^12⁢x , use a graphing calculator to determine how many years it will take the truck to reach a value of $⁢32,978.55 Round to the nearest tenth if necessary.

An investment has an annual interest rate of 4.8% compounded daily. One investor starts with $⁢2,500 and will review the investment when it reaches $⁢2,886.38 Which equation can the investor use to find the number of years, t , it will take before the investment needs to be reviewed?

When investing in a home, some buyers consider the anticipated appreciation. For one area, experts estimate a property value increase of 5.6% annually. One property is valued at $⁢322,475 What values complete the equation to determine the time in years, t , for the property to reach $⁢526,588.43 ?