Contemporary Math Unit 6: Exponential Functions Name: APPLICATION: Growth Factor and Investments Part 1 1. You've won the world's strangest lottery and you have to choose how to receive your prize. You have three options: 1) to be paid $80,000 today, 2) to be paid $3000 per day for the next month, or 3) be paid $1 and have it doubled each day for the next month. a. Choose your top two options and create a visual representation of each option (drawing, graph, etc) b. Which option would you choose? Use math to justify your response. 2. For each situation in the table, identify if it represents a linear or exponential function and explain your reasoning. Situation Linear or Exponential? Reasoning a. You put $100 in a savings account that earns 1% interest every year. b. You put $10 in a savings account and deposit an additional $10 every month. c. You put $75 in a checking account with no annual interest. d. You invest $75 in a portfolio with an average of 6% annual returns. e. You have $1500 in savings. Every year, inflation causes your money to decrease by 2% in purchasing power. www.ngpf.org Last updated: 12/2/21 1