10 terms

# Making Decisions in Finance: Exponential Function (practice)~ amdm

#### Terms in this set (...)

In 2006, the cost of a train ticket from Boston to New York was \$73. Assume that the price rises by 10% per year. Determine the cost of the same ticket 10 years from 2006. Let t = 0 represent 2006.
In 2006, the cost of a train ticket from Boston to New York was \$73. Assume that the price rises by 10% per year. Determine the cost of the same ticket 10 years from 2006. Let t = 0 represent 2006.
C. \$189.34
What is the growth factor of the following example? Assume time is measured in the units given.

A forest shrinks 80% per century.
B. 0.20 per century
Give the starting value a, the growth factor b, and the growth rate r if Q = abt = a(1 + r)t Write r as a percent.

Q=1750(1.593)t
B. a = 1750

b = 1.593

r = 59.3%
Every year, a lake becomes more polluted, and 2% fewer organisms can live in it. If in 2010 there are one million organisms, determine the number of organisms in the lake 5 years later. Let t = 0 represent the year 2010.
C. 903,921 organisms remaining
What is the growth factor of the following example? Assume time is measured in the units given.
A diamond mine is depleted by 1% per day.
C. 0.99 per day
Find a formula for f(t), the size of a population that begins in year t=0 with 2200 members and decreases at a 3.2% annual rate.
D. f(t) = 2200(0.968)t
Use the formula S = 40,000(1.06)t to calculate your salary after 4 years. Round your answer to the nearest dollar.
D. \$50,499
Give the starting value a, the growth factor b, and the growth rate r if Q = abt = a(1 + r)t. Write r as a percent.
D.

a = 0.0022

b = 2.31

r = 131%
Use the formula S = 25,000(1.032)t to calculate your salary after 6 years. Round your answer to the nearest dollar.
A. \$30,201
What is the growth factor of the following example? Assume time is measured in the units given.
D. 1.28 per decade