Multiplier
Investments
Compound Interest
Tables
Graphs
100
The multiplier for a 10% increase.
1.10
100
Linear or Exponential?
Simple or Compound?
Simple Interest (Linear)
100
Lisandro invests $700 in a bond account that pays 5% APR compounded monthly. What is the principal of the account?
P=700
100
Find the change.
m=+3
100
Linear or Exponential?
Linear
200
The multiplier for a 25% decrease
0.75
200
Linear or Exponential?
Simple or Compound?
Compound Interest (Exponential)
200
Lareina invests $600 in a bond account that pays 8% APR compounded monthly. What is the rate, r ?
r=0.08
200
Find the change
b=3
200
The Start
(0,30)
300
The multiplier for 1.5% increase.
1.015
300
Explain the compound interest equation:
A=P(1+\frac{r}{n})^{n*t}
A= Amount after time t .
P= Principal (starting amount).
r= rate (APR) as a decimal.
n= number of compounding periods.
t= time (in years).
300
Daniela deposits $400 in an investment account that pays 6.7% APR, compounded weekly. In a year, how often will the interested be compounded (paid)?
n=52
300
Find f(3)
f(3)=2
300
Change Factor
3
400
The percent change using the multiplier of 1.31
31% increase
400
Find the percent increase per year.
\frac{816}{800}=1.02
(1.02-1)*100=2%\text{ increase}
400
Marvin saves $800 in a savings account with an APR of 4% compounded monthly. How much money will be in the account after 15 years?
A=800(1+\frac{0.04}{12})^{12*15}
A=1456.24
400
Find the change factor
b=4
400
Change Factor
\frac{1}{3}
0.\overline{3}
500
The percent change with the multiplier 0.867 .
13.3% decrease
500
Yovana puts $4900 into a savings account that gets 6.5% annual interest. How much will her balance be after 12 years?
A=4900(1.065)^12
A=8516.38
500
Elizabeth invests $850 in a mutual fund that pays 8.95% APR compounded weekly. What will be her balance after 6 years?
A=850(1+\frac{0.0895}{52})^{52*6}
A=1453.57
500
Find f(4)
f(4)=648\cdot(\frac{2}{3})^4=128
500
Equation
y=64\cdot (\frac{3}{4})^x