M3U1D2c Warmup:

Find the next three terms of each sequence. Explain how you found the terms.

1. 2, 6, 18, 54, ______, ______, ______

2. 5, -20, 80, -320, ______, ______, ______

162 486 1,458

Multiplied by 3 each time

1,280 -5,120 20,480

Multiplied by -4 each time

Homework Check:Document Camera

Collect Parent Letters

M3U1D2c Compound Interest

Objective:

To Interpret the parameters in linear or exponential

functions in terms of context.

Compound InterestSimple interest – interest is paid only

on the principalCompound interest – interest is paid

on both principal and interest, compounded at regular intervals

Example: a $1000 principal paying 10% simple interest after 3 years pays .1 3 $1000 = $300If interest is compounded annually, it pays .1 $1000 = $100 the first year, .1 $1100 = $110 the second year and .1 $1210 = $121 the third year totaling $100 + $110 + $121 = $331 interest

Compound InterestPeriod Interest

CreditedTimesCreditedper year

Rate percompounding period

Annual year 1 R

Semiannual 6 months 2

Quarterly quarter 4

Monthly month 12

2R

4R

12R

Compound InterestCompound interest formula:

A = the compound amount or future valueP = principali = interest rate per period of compoundingn = number of periodsI = interest earned

PAIandiPA n )1(

Compound InterestExample: $800 is invested at 7% for 6

years. Find the simple interest and the interest compounded annually Simple interest:

Compound interest:

336$607.800$ PRTI

58.400$800$58.1200$

58.1200$)07.1(800$)1( 6

PAI

iPA n

Compound InterestExample: $32000 is invested at 10%

for 2 years. Find the interest compounded yearly, semiannually, quarterly, and monthly yearly:

semiannually:

20.6896$32000$20.38896$

20.38896$)05.1(32000$)1( 4

PAI

iPA n

6720$32000$38720$

38720$)10.1(32000$)1( 2

PAI

iPA n

Compound InterestExample: (continued)

quarterly:

monthly:

20.7052$32000$20.39052$

20.39052$)00833.1(32000$)1(

24212%,833.24

12%10

PAI

iPA

nin

89.6988$32000$89.38988$

89.38988$)025.1(32000$)1( 8

PAI

iPA n

PROJECT:Distribute and discuss

Postponed

Classwork:U1D2c WS #1-10

Homework:Finish CW

AND have your parent read the class

letter then sign & return the actual Math III acknowledgement

sheet to me.