1.

Linear Regression

The table below shows the value, V, of an investment (in dollars) n years after 1986.

n	1	3	7	12	14	19
V	13087	13387.78	14809	16731.32	16818	17340.35

Determine the linear regression equation that models the set of data above, and use this equation to answer the questions below. Round to the nearest hundredth as needed.

Based on this regression model, the value of this investment was $_________ in the year 1986. Based on the regression model, the value of this investment is (Select an answer: increasing/decreasing) at a rate of $_________ per year.

2. Exponential Regression The table below shows the population, P, (in thousands) of a town after n years.

n	0	3	7	12	14	19
P	4700	4887.92	5398.82	6139.56	6201.55	6504.66

(a) Use your calculator to determine the exponential regression equation P that models the set of data above. Round the value of a to two decimal places and round the value of b to three decimal places. Use the indicated variables.

P = ____________

(b) Based on the regression model, what is the percent increase per year?

________%

(c) Use your regression model to find P when n = 13. Round your answer to two decimal places.

P = _____________ thousand people

(d) Interpret your answer by completing the following sentence.

The population of the town after ________ years is _________ thousand people.

3. A bank features a savings account that has an annual percentage rate of 2.3 % with interest compounded quarterly. Naomi deposits $9,000 into the account. What is the annual percentage yield (APY) for the savings account? APY=APY= %. Round to the nearest hundredth of a percent.

4. If $18,000 is invested in an account for 20 years. Find the value of the investment at the end of 20 years if the interest is: (a) 6% simple interest: $ _____ (b) 6% compounded annually: $ _____

5. You deposit $2000 in an account earning 3% interest compounded monthly. How much will you have in the account in 15 years? $_____

6. Suppose you want to have $400,000 for retirement in 20 years. Your account earns 9% interest. Round your answers to the nearest cent. a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

7. You want to be able to withdraw $40,000 each year for 25 years. Your account earns 4% interest. How much do you need in your account at the beginning? $_____

8. You have $500,000 saved for retirement. Your account earns 3% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years? Round your answer to the nearest dollar. $___________

9. You want to buy a car. The loan amount will be $28,000. The company is offering a 3% interest rate for 60 months (5 years). What will your monthly payments be? $___________

10. You can afford a $850 per month mortgage payment. You've found a 30 year loan at 6% interest. a) How big of a loan can you afford? $____________ b) How much total money will you pay the loan company? $____________ c) How much of that money is interest? $____________

11. Jenelle bought a home for $330,000, paying 22% as a down payment, and financing the rest at 5% interest for 30 years. Round your answers to the nearest cent.

How much money did Jenelle pay as a down payment? $______

What was the original amount financed? $______

What is her monthly payment? $______

If Janelle makes these payments every month for thirty years, determine the total amount of money she will spend on this home. Include the down payment in your answer. $______