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Published byDenzel Hanthorn Modified over 3 years ago

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Exponential Growth or Decay? Growth Decay Growth

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Exponential Growth or Decay? We need to know what e is…. e is number discovered by Euler. e = 2.71828…. Like π it is irrational. So because e is greater than 1 this function would be an exponential growth.

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Performing Mathematics with e Recall: Well, since e is just a number /base all of these rules apply for e

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=8e 2

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Graphing e e follows all the rules of exponential growth and decay. GrowthDecay f(x)= 2e x f(x)= 2e -x x

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Growth Decay f(x)= 2e x f(x)= 2e -x x : none y : (0,2) D: (- ∞,∞) R: (0, ∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, -∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, ∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, -∞) Asy: y = 0 x

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Compounding Continuously A more accurate depiction of what happens in nature (and mutual funds!) A = final amount P = beginning amount r = interest rate NOT in % form t = time (years)

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Aim: Continuous Compounding Course: Math Literacy Aim: How does the exponential model fit into our lives? Do Now: An insurance agent wishes to sell you.

Aim: Continuous Compounding Course: Math Literacy Aim: How does the exponential model fit into our lives? Do Now: An insurance agent wishes to sell you.

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