Tier 2- Small Group Problems

Instructions:
1) You MUST work in groups of 3-4. You may not work alone.
2) Someone from the group read the background information and take notes as
necessary.
3) Cut and Paste Problem 1 with a graph square and Problem 2 with a graph square
into Interactive Notebook leaving room for work and answer to questions.
4) Work collaboratively to answer problem 1 and 2.
Background Information:
You can model exponential growth with a constant percent increase over specific time
periods using the following function:
t
A(t)= a (1+r )
The function can be used to find the amount A(t) after t time periods, where a is the
initial amount and r is the percent of increase per time period. Note that the base of the
exponential expression, 1+r, is called the growth factor.
Similar to exponential growth, you can model the exponential decay with a constant
percent of decrease over specific time periods using the following function.
t
A(t)= a (1r )
The base of the exponential expression 1-r, is called the decay factor.
Problem 1: Financial Literacy
Teen spending is expected to grow 3.5% annually from $79.7 billion in 2006.
1) Determine if this scenario models exponential growth or exponential decay.
2) Set up the function modeling exponential growth or decay.
3) Make a table then graph the function. Label your axes, y-intercept, asymptote, and 3
points.
4) Using the graph and/or function determine how much will be spent:
1) By 2020
2) After 5 years

Problem 2: Attendance
The attendance for a basketball team declined at a rate of 5% per game throughout a
losing season. Graph the function modeling the attendance if 15 home games were

played and 23,500 people were at the first game. How many people were in attendance
at the 10th game? [Hint: you may want to make a table of values before graphing.]