Graph Exponential Growth Functions Lesson 7.1 Algebra II Strauss

Agenda 1.Tests will be returned on Wed/Thursday. If you wish to see it beforehand you may come in at lunch or 7 th period. 2.New assignment sheets and seats. 3.Lesson 7.1 Graph Exponential Growth Functions 4.Homework: Lesson 7.1 from the assignment sheet.

Lesson 7.1 Graph Exponential Growth Functions Here is an old riddle: You have the choice of receiving $1000/day for 20 days or you can start with $1 and have it doubled every day for the next 20 days. Which should you choose and why? Work on that!

Lesson 7.1 Graph Exponential Growth Functions The “winning” example on the previous page is exponential growth. Let’s see if we can come up with an equation to determine how much money you would have at any time during the process.

Lesson 7.1 Graph Exponential Growth Functions

In the old days…. say 20 years ago, saving accounts were very popular. One could earn interest on their money in the bank… here’s how it worked. You would make a deposit called the principal. The bank would pay you interest on the money that you had in the account. The bank would take into consideration how much was in the account after the interest was applied and then pay you interest on the new amount. This is called compounding.

Lesson 7.1 Graph Exponential Growth Functions Let’s say that you had $1000 and (the old days) you were able to find a bank that gave 5% interest per year, compounded monthly. Could you figure out how much money you would have with 1 months worth of interest? How about 2 months? How about a year. How did you figure it out?

Lesson 7.1 Graph Exponential Growth Functions