Math 229 Lab 4: Section 10.4 Name: Use good notation and show all of your work. Write answers to word problems in complete sentences. 1. Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is: (a) simple. (d) compounded annually. (b) compounded quarterly. (e) compounded monthly. (c) compounded daily (365 days). f) compounded continuously. 2. Since 2000, world population in millions closely fits the exponential function y = 6084e0.012r, where x is the number of years since 2000. (a) The world population was about 6853 million in 2010. How closely does the function approxi- mate this value? (b) Use this model to predict the population in 2020. (c) Use this model to predict the population in 2030. Page 1Math 229 Lab 4: Section 10.4 Name: 3. You need to borrow $50,000 to start your own business. You get approved at three bank for the following rates: Bank A at 6.4% interest compounded annually, Bank B at 6.3% interest compounded monthly, and Bank C at 6.35% interest compounded quarterly. At which bank will you pay the least interest? 4. Find the present value that will grow to $5000 if interest is 3.5% compounded quarterly for 10 years. 5. Find the required annual interest rate to the hundredth of a percent for $1200 to grow to $1500 if interest is compounded quarterly for 5 years. Page 2