Introduction Exponential Growth and Decay

The equation A = 1300(1.02)^x is being used to calculate the amount of money in a savings account. What does 1.02 represent in this equation?

• 0.02% decay

• 0.02% growth

• 2% decay

• 2% growth

Milton has his money invested in a stock portfolio. The value, v(x), of his portfolio can be modeled with the function v(x) = 30,000(0.78)x , where x is the number of years since he made his investment. Which statement describes the rate of change of the value of his portfolio?

• It decreases 78% per year.

• It decreases 22% per year.

• It increases 78% per year.

• It increases 22% per year.

In an exponential function, what does the 'a' represent? 

• SLOPE

• RATE OF CHANGE

• Y-INTERCEPT

• COMMON RATIO

What does this graph represent?

• Exponential Decay

• Exponential Growth

Is the following function an example of decay or growth? f(x) = 2(1.25)^x

• Exponential Growth

• Exponential Decay

Identify the initial value:

y = 6.87 (4)^x

• a = 4

• a = 6.87

• a = 3

• a = 1

Which does y= 2(.5)^x represent?

• Exponential Growth

• Exponential Decay

Bacteria growing can be represented by which of the following?

• Exponential Growth

• Exponential Decay

Identify the common ratio (multiplier) of the function f(x)=2(4)^x.

• 2

• 4

• (2)^x

• 8

Consider the equation y=200(1.08)^x which models the increase in value of an autographed Annie program. Let y = the value of the item, let x = the number of years since the performance. What does the 1.08 in the equation indicate?

• The value of the item is increasing by $1.08 each year.

• The value of the item is increasing by 1.08% each year.

• The value of the item will increase to $200 1.08 years after purchase.

• The value of the item is increasing by 8% each year.