7-6B Worksheet Per: Name:

Exponential Growth and Decay Applications Honors Algebra 3-4 – Unit 3

When talking about exponential growth and decay, there are two models. Economists usually prefer the first
model, and scientists prefer the second. Not all models are exact, but they help estimate the amount that will
be present. If you use both models for the same problem, there may be some difference between the results.

Percentage Model (use especially for $) Scientific Model

nt
 r
A(t) = a(1 + r)t or A(t ) = a1 + 
 n
A(t) = aekt
a = initial amount
A(t) = current amount
r = rate (as a decimal)
n = # of compounding periods per year
k = change constant
t = time
For growth the rate is positive (+) and for decay the rate is negative (–).
The constant of change, k, is essentially the same as the “rate,” but often times it must be determined.
Some real-life applications of exponential growth and decay are: appreciation or depreciation of personal
belongs (homes, cars, computers, etc.), world or biological populations (country populations, bacterial or
wildlife growth), economy (Gross Domestic Product – GDP), and radioactive dating (Carbon-14).
Solve each problem.
1. POPULATION The population of rabbits in an area is modeled by the growth equation P(t) =
8000e0.26t, where the initial population is 8000 rabbits and t is in years. How long will it take for the
population to reach 25,000 rabbits?

2. DEPRECIATION Kayla bought an iPhone for $499 with a two-year contract. Even though iPhones
retain their value more than most phones, it is expected to depreciate at a rate of 34% per year. What
will the value of the phone be in 2 years?

3. INFLATION For Dave to buy a new car comparably equipped to the one he bought years ago would
cost $17,500. Since Dave bought the car, the inflation rate for cars like his has been at an average
annual rate of 5.1%. If Dave originally paid $10,000 for the car, how long ago did he buy it?
4. RETIREMENT SAVING Hannah started a Roth IRA when she turned 24 years old in January 2015.
She was able to invest $5500 in mutual funds with interest compounded monthly. She does not touch
the money in her account for 30 years. How much money would she have for retirement by January
2045 with the following average annual rates of return:
a.) 1% annually? b.) 5% annually? c.) 10% annually?

5. RADIOACTIVE DECAY Half-life is how long in years t it takes to go from 100% to 50%. A
radioactive substance has a half-life of 32 years. Find the constant k in the decay formula for the
substance to 5 decimal places.

6. CARBON DATING The half-life of Carbon-14 is approximately 5760 years. From this value, the
decay constant k is approximately 0.00012. A paleontologist examining the bones of a woolly
mammoth estimates that they contain only 3% as much Carbon-14 as they would have contained when
the animal was alive. How long ago did the mammoth die?

7. PALEONTOLOGY A paleontologist finds a bone that might be a dinosaur bone. In the laboratory,
she found that the Carbon-14 found in the bone is 1/1000 of that found in living bone tissue.
Remember, the decay constant k is approximately 0.00012. Could this bone have belonged to a
dinosaur? Explain your reasoning.