Exponential models (compound, continuous, decay)
Exponential Functions and Models
Exponential Functions and Models is the opening topic of Exponential & Logarithmic Functions in the California Common Core State Standards. It is aligned to Standard F-IF.7e, which requires students to construct and interpret exponential functions and models.
An exponential function \(f(x)=a\cdot b^x\) grows when \(b>1\) and decays when \(0
Theory
An exponential function has the variable in the exponent:
The base \(b\) sets the behavior: \(b>1\) gives growth, \(0<b<1\) gives decay. Every such graph passes through \((0,a)\), has domain all reals, range \(y>0\) (when \(a>0\)), and a horizontal asymptote \(y=0\).
Exponential function and its growth/decay factor:
How to work with exponential functions
- Identify \(a\) and \(b\); check \(b\) for growth vs decay.
- Evaluate by substituting into the exponent.
- Model: \(a\) is the initial amount, \(b=1\pm r\) from the percent rate.
- From data: \(f(0)=a\), then a second point fixes \(b\).
Substitute, using \(2^0=1\).
| \(f(0)\) | \(=\) | \(3\cdot 2^0=3\) |
| \(f(3)\) | \(=\) | \(3\cdot 2^3=24\) |
The base \(0.85\) is between 0 and 1, so the function decays.
| \(0<0.85<1\) | \(\Rightarrow\) | \(\text{decay}\) |
It decreases by \(15\%\) each step.
Growth factor \(1+0.03=1.03\).
| \(P(t)\) | \(=\) | \(8000(1.03)^t\) |
| \(P(10)\) | \(=\) | \(8000(1.03)^{10}\approx 10{,}751\) |
\(f(0)=a=4\); then \(f(1)=a\cdot b=12\) gives the base.
| \(4b\) | \(=\) | \(12\) |
| \(b\) | \(=\) | \(3\) |
| \(f(x)\) | \(=\) | \(4\cdot 3^x\) |
Common pitfalls
Frequently asked questions
What is an exponential function?
A function \(f(x)=a\cdot b^x\) with the variable in the exponent. It grows if \(b>1\) and decays if \(0<b<1\).
How do you tell growth from decay?
Look at the base: greater than 1 is growth, between 0 and 1 is decay.
What is the horizontal asymptote of an exponential function?
\(y=0\) for \(f(x)=a\cdot b^x\); adding a constant \(k\) shifts it to \(y=k\).
How do you find the base from a percent rate?
Add or subtract the rate from 1: \(+3\%\) gives \(b=1.03\), \(-15\%\) gives \(b=0.85\).