Properties of Exponential Functions Algebra II 8-2 Properties of Exponential Functions

Graph 𝑦= 1+ 1 𝑥 𝑥 Window X min: 0 X max: 5 Y min: 0 Y max: 4

Graph 𝑦= 1+ 1 𝑥 𝑥 Window X min: 0 X max: 100 Y min: 0 Y max: 5

𝑒≈2.71828 Euler’s Constant Used for continuous compound interest

Continuous Compound Interest 𝐴=𝑃 𝑒 𝑟𝑡 𝐴=𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑃=𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑟=𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑅𝑎𝑡𝑒 𝑡=𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑦𝑒𝑎𝑟𝑠

Connor wants to buy stock in Surge the drink Connor wants to buy stock in Surge the drink. Connor visits Tina and Anna-Grace at TAG Bank. They tell him, that they offer continuous interest at 5%. If Surge stock costs $1500, how much would Connor need to deposit to buy the stock in 5 years? 𝐴= 𝑃= 𝑟= 𝑡=

1500=𝑃 𝑒 (0.05)(5) 1500=1.284𝑃 𝑃=$1168.20

Martin is trying to save for college Martin is trying to save for college. He deposits $4000 into a savings account that is compounded continuously at 8%. After 6 years how much has he saved? 𝐴=4000 𝑒 (0.08)(6) 𝐴=4000 𝑒 0.48 𝐴=4000 1.616 𝐴=$6464.2976

iRAT Samantha deposits $1500 dollars into a savings account. The interest rate for the account is 4%. After 10 years how much money will she have? After 20 years how much is in the account.

Problems Page 442 #24-26, 30, 37, 40,41