Unit 2

Exponential Functions and Logarithms

2.1 Introduction to Exponential Functions

An Exponential Function has an

equation that can be written in the form

y Ab

where A and b are constants, and b>0

There are two different types

2.1 Introduction to Exponential Functions

Exponential Growth (population, interest,)

b>1

Note: the rate must be added to 1, since the original

amount remains, and the rate is added. (100% + rate)
Example: The population of the city of Airdrie in 2002 was
26,500 and the growth rate is 3.7% per year.

a) determine an equation to show the population in any

year from 2002.
b) sketch a graph to show the population over time.

c) determine the population in 2014.

d) determine the year will the population pass 45,000
2.1 Introduction to Exponential Functions

a) Population = 26,500(1.037) x

b)

2.1 Introduction to Exponential Functions

c) Note: 2014 is 12 years since 2002. So we can

use 2nd calc, value and enter 12.

12, 40981.793

Therefore the population in 2014 is about 40,982.

2.1 Introduction to Exponential Functions

d) Since the y is the population in this question,

we can draw another line at y = 45,000 and find
the intersection of both curves.

Use 2nd calc, intersect

14.574446, 45000

The population will reach 45,000 about

14.57 years after 2002, or in 2016.
2.1 Introduction to Exponential Functions

Exponential Decay (depreciation, half lives,)

0<b<1
Note: the rate must be subtracted from 1. You must have r
as the amount that is retained. A 22% reduction is the same
(100% - rate)
as paying 78% of the price.
Example: A new car is bought for $38,600. Each year the car
depreciates 14% of its value the previous year.

a) determine an equation to show the value of the car in

any year.
b) sketch a graph to show the value over time.

c) determine the value of the car when it is 16 years old.

d) determine the year when the car is worth $7000.
2.1 Introduction to Exponential Functions

a) Value = 38,600(0.86) x

note: 14% depreciation

means 86% retention

b)

2.1 Introduction to Exponential Functions

b) again using 2nd calc, value and entering x = 16

16, 3455.9108

therefore this 16 year old car is worth $3,455.91

2.1 Introduction to Exponential Functions

d) We again need another line at y = 7000 and need to

determine the intersection using 2nd calc, intersection

11.320179, 7000

It takes about 11.3 years for the car to be worth $7000.

2.1 Introduction to Exponential Functions