Page 75 - Math Course 3 (Book 1)
P. 75
Exponential Growth and Decay
SAVINGS
For Exercises 3 and 4, use the following information.
The Fresh and Green Company has a savings plan for its employees. If an employee makes
an initial contribution of $1000, the company pays 8% interest compounded quarterly.
3. If an employee participating in the plan withdraws the balance of the account after 5 years, how much will
be in the account?
4. If an employee participating in the plan withdraws the balance of the account after 35 years, how much will
be in the account?
5. HOUSING Mr. and Mrs. Boyce bought a house for $96,000 in 1995. The real estate broker indicated that
houses in their area were appreciating at an average annual rate of 4%. If the appreciation remained steady
at this rate, what was the value of the Boyce’s
home in 2005?
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