Exponential

Functions

Lets compare Linear Functions

and Exponential Functions
Linear Function

Exponential Function

Change at a constant rate

Rate of change (slope) is a constant

Change at a changing rate

Change at a constant percent rate

Suppose you have a choice of two

different jobs when you graduate
college:
o Start at $30,000 with a 6%
per year increase
o Start at $40,000 with
$1200 per year raise
Which should you choose?

Which Job?

When is Option A better?

When is Option B better?
Rate of increase changing
Percent of increase is a

constant
Ratio of successive years is
1.06

Rate of increase a
constant $1200

Year

Option A

Option B

$30,000

$40,000

$31,800

$41,200

$33,708

$42,400

$35,730

$43,600

$37,874

$44,800

$40,147

$46,000

$42,556

$47,200

$45,109

$48,400

$47,815

$49,600

10

$50,684

$50,800

11

$53,725

$52,000

12

$56,949

$53,200

13

$60,366

$54,400

14

$63,988

$55,600

Lets look at
another example

Consider a savings account

with compounded yearly
income

What does compounded

yearly mean?
You have $100 in the
account
You receive 5% annual
interest

Complete the table

Find an equation to model
the situation.
How much will you have in
your account after 20
years?

At end of
year

Amount of interest earned

New balance in
account

100 * 0.05 = $5.00

$105.00

105 * 0.05 = $5.25

$110.25

110.25 * 0.05 = $5.51

$115.76

4
5

Savings Accounts
How do they differ?
Simple Interest

I = interest accrued
P = Principle
r = interest rate
Linear
t = time

Compound Interest
A = Current Balance
P = Principle
r = interest rate
n = number of times

compounded yearly
Exponential
t = time in years

Where else in our

world do we see
exponential models?

Examples of Exponential Models

Money/Investments
Appreciation/Depreciation
Radioactive Decay/Half
Life
Bacteria Growth
Population Growth

How can you determine whether an exponential

function models growth or decay just by looking at its
graph?

Graph 1

Graph 2

 Exponential growth functions

increase from left to right
Exponential decay functions
decrease from left to right

How Can We Define Exponential

Functions Symbolically?

Notice the variable is in the exponent?

The base is b and a is the coefficient.
This coefficient is also the initial value/yintercept (when x=0)

Comparing Exponential Growth/Decay

in Terms of Their Equations
Exponential Growth
for
Example:

Exponential Decay

for
Example:

Can you automatically conclude that an

exponential function models decay if the
base of the power is a fraction or decimal?
or

No some fractions and decimals have a value greater than one, such as

3.5 and , and these bases produce exponential growth functions

Fry's Bank Account (clip 1)

Frys Bank Account (clip 2)
On the TV show Futurama Fry checks his bank
statement
Since he is from the past his bank account has not been
touched for 1000 years
Watch the clip above to see how Frys savings account
balance has changed over time
Answer the questions on your worksheet following each
clip

One More
Example

Consider a medication:
The patient takes 100 mg
Once it is taken, body filters medication
out over period of time
Suppose it removes 15% of what is
present in the blood stream every hour

Fill in the
rest of the
table

At end of
hour

Amount remaining

100 0.15 * 100 = 85

85 0.15 * 85 = 72.25

3
4
5

What is the
growth
factor?

Growth Factor = 0.85

Note: when growth
factor < 1, exponential
is a decreasing function

Here are Some Videos

to Further Explain
Exponential Models

The Magnitude of an Earthquake

Exponential Functions: Earthquakes Explained (2:23)

In this clip, students explore earthquakes using exponential

models. In particular, students analyze the earthquake that
struck the Sichuan Province in China in 2008

The Science of Overpopulation

The Science of Overpopulation (10:18)

This clip shows how human population grows

exponentially. There is more of an emphasis
on science in this clip then there is about
mathematics as a whole.