Weekly Reflection 8/31
EXPONENTIAL WORD PROBLEMS Objective: Use and understand compound interest formulas to solve word problems. Example: Suppose $5000 is put into an account that pays 4% compounded continuously. How much will be in the account after 3 years? Because the number of interest periods is not provided, and it is continuously, we have to use the A=pe^(rt) formula. so it would be a=5000e^(.04*3) When solved, A= $5637.48 ANALYSIS Misconception: At first I thought you had to use the same formula for every problem, however when it says continuously compounded, you have to use A=pe^(rt) I overcame this misconception when I realized this would not work, so I then asked my peers how to do this, and they explained. Essential Question 1: How much will your dream car be worth in five years with continuously compounded interest? Give an example. For my example I will be using the Bugatti Chiron (worth 2.9 million) with a 4% interest. A=2900000e^(.04*5) Whi...