Page 808 - Algebra 1

h.
(Ex 3)
A second account has $2500 and earns 12% compounded annually. Complete the table to find the total amount in each account after 1, 2, 5, and 10 years.
Principal
Rate
Years
Total Amount in Account
$2500
12%
1
$2500
12%
2
$2500
12%
5
$2500
12%
10
i.
(Ex 3)
j.
(Ex 4)
Use the table in problem g to graph the account earning simple interest and the table in problem h to graph the account earning compound interest on the same coordinate plane. Compare the growth of the two accounts over time.
RetirementInvestments Twopeopleplantoretireatage60.A30-year-old man invests $4000 in a bond that pays 5% per year, compounded annually. A 40-year-old man invests $6000 in a bond that pays 5% per year, also compounded annually. Whose investment will be worth more when they reach retirement age and by how much?
Practice
Distributed and Integrated
*1. $900 is invested at 3% simple interest for 5 years. How much interest is (116) earned?
*2. Write Explain the difference between simple and compound interest. (116)
*3. Formulate The graph shows the value of a money market account that pays (116) compound interest. How much principal was originally invested?
y
800
600
400
200
x
2
4
6
8
Years
4. Population The exponential function y = 3.45(1.00617)x can model the (108) approximate population of Oklahoma from 2000 to 2006, where x is the
number of years after 2000 and y represents millions of people. Assuming the model does not change, predict when the population will reach 4 million?
Lesson 116 793
Total Amount in Account