1. Growth And Decay Appreciation & depreciation8
Growth And Decay Appreciation & depreciation

2. What you Should Learn
I can interpret coefficients and exponents in the context of the problem.
I can model and solve growth (appreciation) and decay (depreciation) problems.

3. Exponential Growth
Like a bank account or credit card balance, other things can grow, decay, appreciate or depreciate exponentially.
Populations (bacteria)
Value of Car
Value of Real Estate

4. Growth and Decay formula
A = P(1 + r)t
A = Final Amount
P = Principal (initial amount)
r = growth/decay rate (as a decimal)
If decaying/depreciating, be sure to make r a negative decimal
t = # of years/hours/minutes/etc.

5. Example 1
Suppose that a small country has a population of 10 million people and an annual growth rate of 4.5%
Write an equation to model the population.
How many people will there be in 25 years?

6. Example 2
A Honda Accord cost $18,500 new in Suppose the car depreciated 8% per year.
Write an exponential equation to model its value?
How much will the car be worth in five years?

7. Example 3
A Honda Accord cost $18,500 new in In 5 years it is worth $12, Find the rate at which the car is depreciating each year.
Write an exponential equation to model its value?
How much will the car be worth in 10 years?