2. Leah would like to double her $12,000 investment in 10 years. Assuming the interest is compounded daily, what interest rate, r, would she need to earn? Show your work.
2. Leah would like to double her $12,000 investment in 10 years. Assuming the interest is compounded daily, what interest rate, r, would she need to earn? Show your work.
3. At Leah’s current interest rate of 4.5%, how long will it take to double her
$12,000 investment? Assume the interest is compounded daily, and round your answer to the nearest tenth of a year. Show your work.
4. Leah is also planning to make annual contributions to an investment account that pays 4.5% annual interest, compounded monthly.
Part A
Complete the tables to find the amount in the account if she deposits either
$600 or $1200 per year.
| Year | Amount with Interest | Deposit | Total Amount |
| 0 | 600 | 600 | |
| 1 | 600 | ||
| 2 | 600 | ||
| 3 | 600 | ||
| 4 | 600 | ||
| 5 | 600 |
| year | Amount with interest | deposit | total amount |
| 0 | 1200 | 1200,00 | |
| 1 | 1200 | ||
| 2 | 1200 | ||
| 3 | 1200 | ||
| 4 | 1200 | ||
| 5 | 1200 |
Part B
Use a graphing calculator to make a scatter plot of the amounts Leah will
accumulate for years 1 through 5.
Part C
Use a calculator to find an exponential regression model, of the form
A(t) = a ⋅ bt, that best fits each set of data.
Part D
Compare the graphs of the two models. What is the range of each function?
How does the value of a affect the graphs? Which function has a greater rate
of change?
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