Exponential

Models
Exponential growth function
• It is an increasing function,sometimes called
an exponential growth function if b > 1.
• It is a decreasing function,sometimes called a
n exponential decay function if 0<b<1.
EXAMPLE:
Determine the growth factor of the quantity that inc
rease by the goven percent.
a.50% b.75% c.10% d.12.5%
SOLUTION:
A.for 5%: 100% + 50%=150%=1.50
B.for 75%: 100% + 75%=175%=1.75
C.for 10%: 100% +10%=110%=1.10
D.for 12.5%:100%+12.5=112.5%=1.125
EXAMPLE 2:

•Emerson deposits 50,000 in a

savings account.the account
pays 6% annual interest. If he
makes no more deposits and
no withdrawals, calculate his
new balance after 10years.
SOLUTION:
• The interest a 6% rate growth per ye
ar , so the growth factor or the const
ant multiplied is a 100% + 6%=106%
or 1.06. To find an equation that can
be used to find the new balance afte
r any number of years by considering
the yearly calculations, we have:
Expanded form Exponential form Result

Initial Amount: 50 =50 000

000
After 1year:50 =50 000(1.06)raise to =53 000
000(1.06) 1
2Years:50 000(1.06) =50 000(1.06)raise to =56 180
(1.06) 2
3years:50 000(1.06) = 50 000(1.06)raise to =59 55
(1.06)(1.06) 3
4years:50 000(1.06) =50 000(1.06)raise to =63 124
(1.06)(1.06)(1.06) 4

X years:50 000 (1.06) =50 000(1.06)raise to

(1.06)...(1.06) x
• We can now use this equation y=50 000(1.06)raise t
o x, where x represents time in years and y represe
nts the new balance after balance after 10years, w
e have:

• y=50 000(1.06) raise to 10

• =89 542.38
• the new Balance after 10years is 89542.38.
• When an amount increases by a constant percent,
we have exponential growth...
Exponential Growth
• Can be modeled by
• y=ab raise to x

• Example: A bacteria grows at a rate of 25% each day

. There are 500 bacteria today.how many will the
re be.
• A.tomorrow? B.one week from now? C.one month f
rom now?
Solution
• A.Using the formula y=ab raise to x wh
ere a=500, b=1.25, and x=1,then
• y=500(1.25)raise to 1 substitute 500 f
or a,1.25 for b,and 1 for x
• =625
• There will be 625 bacteria tomorrow
Using Exponential Growth Mo
dels
• If a certain quantity increases by a fixed
percent each year(or any other time per
iod), the amount of that quantity after t
years can be modeled by the equations:
• y=a(1+r)raise to t
• Where a is the initial amount and r is the percent in
creased expressed as decimal.in this case.the quan
tity 1+r is calle the growth factor.

• Where A=compund amount

• P=principal
• r=interest rate
• T=time in years and
• n=period per year(semi-annually,quarter
ly)
That's all thank you

Prepared by:
Lajom Mark Joseph
Corpuz dana
boy lovely
gucela mary joy
ocampo joy