Two questions, twenty per question!
1. After 3 years, what is the total amount of a compound interest investment of $5,000 at 4% interest, compounded quarterly?
$5,203.71
$5,360.68
$20,480,000
$5,634.13
2. The bird population on an island is declining at a rate of 5% per year. The bird population on the island was 3,200 in the year 2015.
Which answer is the best prediction of the bird population on the island in the year 2025? Use the formula b(1−r)^t, where b is the initial amount, r is the rate of decline, and t is the amount of time in years.
1,758
5,212
1,916
2,476