1. Exponential Functions Chapter5Section1

2. Exponential Functions Depending on the form of the base, b an exponential function can model growth (b>1) or decay (0<b<1). We will explore these two cases in the coming slides.

3. Exponential Growth

4. Example 1 Compounding n times a year: S = future value P = present value r = interest rate as a decimal n = compounding times a year t = number of years

5. Example 2

6. Exponential Decay

7. Example 3

8. The Natural Base, e Compounding Continuously: S = future value P = present value r = interest rate as a decimal t = time The number e > 1, so that its graph is like the other exponential functions with bases > 1.

9. Practice

10. More Practice