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

2. Graph 𝑦= 𝑥 𝑥
Window
X min: 0
X max: 5
Y min: 0
Y max: 4

3. Graph 𝑦= 𝑥 𝑥
Window
X min: 0
X max: 100
Y min: 0
Y max: 5

4. 𝑒≈
Euler’s Constant
Used for continuous compound interest

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

6. 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=

7. 1500=𝑃 𝑒 (0.05)(5) 1500=1.284𝑃 𝑃=$

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

9. 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.

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