E. Exponential Growth or Decay? Growth Decay Growth.

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Presentation transcript:

e

Exponential Growth or Decay? Growth Decay Growth

Exponential Growth or Decay? We need to know what e is…. e is number discovered by Euler. e = …. Like π it is irrational. So because e is greater than 1 this function would be an exponential growth.

Performing Mathematics with e Recall: Well, since e is just a number /base all of these rules apply for e

=8e 2

Graphing e e follows all the rules of exponential growth and decay. GrowthDecay f(x)= 2e x f(x)= 2e -x x

Growth Decay f(x)= 2e x f(x)= 2e -x x : none y : (0,2) D: (- ∞,∞) R: (0, ∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, -∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, ∞) Asy: y = 0 x : none y : (0,2) D: (- ∞,∞) R: (0, -∞) Asy: y = 0 x

Compounding Continuously A more accurate depiction of what happens in nature (and mutual funds!) A = final amount P = beginning amount r = interest rate NOT in % form t = time (years)