Practice: Growth and Decay

These web-based activities were developed, during summer sessions from 1997 through 1999, by students at Mainland High School, located in Daytona Beach, FL. As part of Mainland's CCTT grant, the students were given permission by the book's publisher to convert the ancillary materials of the County's adopted Algebra 1 Textbook into html format.

Worksheet
Growth and Decay

Solve each of the following word problems.

1. Ten years ago, Mr. and Mrs. Boyce bought a house for $96,000. Their home is now worth $125,000. Assuming a steady rate of growth, what was the annual rate of appreciation?

2. The greens bought a condominium for $83,000. Assuming that its value will appreciate 6% per year, how much will the condo be worth in five years when the Greens are ready to move?

3. Ten years ago, Tiffany's mother bought a new car for $9000. Tiffany is now going to buy the car for $900. Assuming a steady rate of depreciation, what was the a[[roximate annual rate of depreciation?

4. A piece of machinery valued at $1500 depreciates at a steady rate of 10% yearly. The owner of the business plans to replace the equipment when its value has depreciated to $500. In how many years will the equipment be replaced?

5. Kyle has saved $500 of the money he earned working at Carousel Music. If he spends 10% of the money each week, after how many weeks will he have less than $1?

6. Zeller Industries bought a piece of weaving equipment for $50,000. It is expected to depreciate at a steady rate of 10% per year. When will its value have depreciated to $25,000?

7. The Fresh and Green Company has a savings plan for its employees. If the employee makes an initial contribution of $1000, the company pays 8% interest compounded quarterly.

If an employee participating in the plan withdraws the balance of the account after five years, how much will the company have paid into the account?
If an employee participating in the plan withdraws the balance of the account after thirty-five years, how much will the company have paid into the account?