Wednesday, May 7, 2014

Graphing Exponential

Growth:
Example:
when a > 0 and the b is greater than 1, the graph will be increasing (growing).
For this example, each time x is increased by 1, y increases by a factor of 2.

Such a situation is called Exponential Growth.


Decay:
Example:
when a > 0 and the b is between 0 and 1, the graph will be decreasing (decaying).
For this example, each time x is increased by 1, y decreases to one half of its previous value.

Such a situation is called Exponential Decay.

Compound Interest

Definition
When the interest rate is applied to the original principal and any accumulated interest, this is called compound interest.

Picture: