Evaluating and Solving an Linear and Exponential Applications
Identify the information given to you in the application problem below. Use that
information to answer the questions that follow.

Assume you can invest $2000 at 5.45% Simple Interest or 4.1% Compound Interest
(Annual).

The equation for Simple Interest is modeled by: A = P+ Prt. Compound
Interest is
modeled by A = P(1+r). The corresponding equations for these two types of interest are given below.

S(t) = 2000+109t C(t) = 2000 (1.041)^t

a) Complete the table for each function. Round your answers to two decimal places as
needed.

t1510 15
5(t) O
20
b) At the end of what year will the Accrued Value of the account earning Compound
Interest (C(t)) be higher than the Accrued Value of the
account paying Simple Interest (
S(t))?
The investments earning Compound Interest will have a higher Accrued Value at the end
of year