Problem 3.1:
Which investment earns more interest: $10,000 at 6.2% interest compounded
quarterly (4 times per year) for twenty years, or $10,000 at 7.5% interest
compounded continuously for 15 years?
Problem 3.2:
How soon will an investment double its value if it is invested at 5%
compounded monthly?
Problem 3.3:
A city's population grows at the constant relative rate of 6%. If the
original population is
10, 000, how many people are there after ten years?
Problem 3.4:
The population of a bacteria culture exponentially grows from 2,000 to 20,000 in
six hours. What is the constant relative rate of growth?
Problem 3.5:
A substance decays exponentially and has a half-life of 2200 years. A
specimen is found containing only 20% of its original amount of the substance.
How old is the specimen?
