Chapter 3 Exponential Functions

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What is an exponential function?

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What does the base of an exponential function indicate?

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The base of an exponential function indicates the growth or decay factor. If the base is greater than 1, the function represents exponential growth; if the base is between 0 and 1, it represents exponential decay.

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The continuous growth rate is -0.05, indicating that the function is decreasing.

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The decay rate can be found by subtracting the base from 1. Here, the decay rate is 1 - 0.80 = 0.20 or 20%.

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What does it mean if a function is decreasing?

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A function is decreasing if its output values decrease as the input values increase. In exponential functions, this occurs when the base is less than 1.

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Front

What is the difference between continuous and discrete compounding?

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Continuous compounding occurs when interest is calculated and added to the principal at every moment, while discrete compounding occurs at specific intervals (e.g., annually, semi-annually).

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How do you find the growth factor in an exponential function?

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