Exponential Functions Chapter5Section1

Exponential Functions Depending on the form of the base, b an exponential function can model growth (b>1) or decay (0<b<1). We will explore these two cases in the coming slides.

Exponential Growth

Example 1 Compounding n times a year: S = future value P = present value r = interest rate as a decimal n = compounding times a year t = number of years

Example 2

Exponential Decay

Example 3

The Natural Base, e Compounding Continuously: S = future value P = present value r = interest rate as a decimal t = time The number e > 1, so that its graph is like the other exponential functions with bases > 1.

Practice

More Practice