Exponential Growth and Decay Word Problems

Front

What does the P stand for in the exponential growth/decay formula?

Back

Initial amount

Front

Is a population decreasing at a rate of 0.5% each month considered growth or decay?

Back

Decay

Front

How many times a year does 'Semi-Annually' mean?

Back

2

Front

What is the formula for compound interest compounded semi-annually?

Back

A = P(1 + r/n)^(nt) where n = 2

Front

If Karla invested $1,000 at 6.75% interest compounded semi-annually, what is the equation to find her amount after 15 years?

Back

A = 1000(1 + 0.0675/2)^(2*15)

Front

What is the formula for continuous compounding?

Back

A = Pe^(rt)

Front

If Dash invested $1,000 at 10% interest compounded continuously, how much will he have after 10 years?

Back

$2718.28

Front

What does the variable 'r' represent in the exponential growth/decay formula?

Back

The rate of growth or decay

Front

What is the difference between exponential growth and exponential decay?

Back

Exponential growth increases over time, while exponential decay decreases over time.

Front

What is the formula for exponential decay?

Back

A = Pe^(-rt) where A is the amount remaining.