4.6 Exponential Growth and Decay

Exponential Growth Exponential growth occurs when a quantity increases by the same percent r in each time period t. Remember if b > 1, then you will have growth. Growth rate   Initial value Growth factor Time Period (in years)   3.4.2: Graphing Exponential Functions

Exponential Growth Exponential Decay Money compound interest Money Depreciation y=A = the future value of the investment/loan, including interest C=P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed for    

Compounded interest Annually means 1 time per year Bi-annually means 2 times per year Quarterly means 4 times per year Monthly means 12 times per year Bi-monthly means 24 times per year If the problem does not mention any of these then assume n = 1 T is in years, so if you have months then divide by 12, Example: 5 months would be 5/12 for T