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Algebra and Trigonometry · Lesson 4.1

Exponential Models

How it works

An exponential model multiplies by a constant factor over equal input intervals. The initial value is the output at input zero. A growth factor above 1 increases values, while a factor between 0 and 1 models decay. Identify the time unit before interpreting a percentage rate.

A(t)=A0bt,b=1+r for growthA(t)=A_0b^t,\qquad b=1+r\text{ for growth}

Worked examples

Example 1

A quantity starts at 200\displaystyle 200 and grows 10%\displaystyle 10\% per year. Find its value after 2\displaystyle 2 years.

The factor is 1.10\displaystyle 1.10. Thus A(2)=200(1.10)2=242\displaystyle A(2)=200(1.10)^2=242.

Example 2

Write a model for 80\displaystyle 80 units decreasing 25%\displaystyle 25\% per hour.

The hourly factor is 0.75\displaystyle 0.75, so A(t)=80(0.75)t\displaystyle A(t)=80(0.75)^t.

Problems

Problem 4.1.1

Find the value of P(t)=500(1.04)t\displaystyle P(t)=500(1.04)^t at t=2\displaystyle t=2.

Show worked solution

P(2)=500(1.04)2=540.8\displaystyle P(2)=500(1.04)^2=540.8.

Problem 4.1.2

A quantity halves every 3\displaystyle 3 hours. Write its model when it starts at 120\displaystyle 120.

Show worked solution

The number of half-life intervals is t/3\displaystyle t/3, so A(t)=120(1/2)t/3\displaystyle A(t)=120(1/2)^{t/3}.

Problem 4.1.3

From the graph of A(t)=100(1.2)t\displaystyle A(t)=100(1.2)^t, identify the initial value and percentage growth per time unit.

The graph of 100 times 1.2 to the t starts at 100 and increases.
Read the initial value and compare equal time intervals.
Show worked solution

A(0)=100\displaystyle A(0)=100, so the initial value is 100\displaystyle 100. The factor 1.2=1+0.2\displaystyle 1.2=1+0.2 gives 20%\displaystyle 20\% growth per time unit.

The graph of 100 times 1.2 to the t starts at 100 and increases. The model starts at 100 and grows by 20% per time unit.
The model starts at 100 and grows by 20% per time unit.

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