Professional Documents
Culture Documents
FSMQ Growth and Decay
FSMQ Growth and Decay
Method 1
Interest at end of Year 1 = 5% of £1000
= £1102.50
and so on
Compound Interest
Amount invested = £1000 Interest Rate = 5%
Method 2
Amount at end of Year 1 = 105% of £1000
Method 3
Amount at end of Year n = 1.05n x£1000
Exponential Growth
A = 1.05n x£1000 y is A x is n
k = 1000 a = 1.05 m = 1
Decay functions
Exponential Decay
a > 1 m negative
General Shape of Graphs
y y
y ka mx
k positive
m positive
a>1 k positive
k m negative k y ka mx
a>1
0 x 0 x