this amount will be more than 1 the base of our exponential function
TRANSCRIPT
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Exponential Models
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Exponential Growth
P is the beginning amount (Principle)
r is the rate (percentage, written as a decimal)
t is time
(1+ r) is the growth rate
This amount will be more than 1
The base of our exponential function
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Exponential Decay
P is the beginning amount (Principle)
r is the rate (percentage, written as a decimal)
t is time
(1- r) is the decay rate
This amount will be between 0 and 1
The base of our exponential function
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Example 1
It costs $400 to buy a football autographed by Falcon’s quarterback Matt Ryan. It is expected increase in value 4% per year.
a) Does this equation represent growth or decay? _______________
b) What is the rate of growth or decay?_______________
c) What is the initial value? _______________
d) Write a model describing this situation. _______________
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Example 2
A house in my neighborhood is for sale for $150,000. It is expected to increase in value 1.2% per year.
a) Does this equation represent growth or decay? _______________
b) What is the rate of growth or decay?_______________
c) What is the initial value? _______________
d) Write a model describing this situation. _______________
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Example 3
A new I-Pad 2 costs $429. It is expected to decrease in value 15% each year.
a) Does this equation represent growth or decay? _______________
b) What is the rate of growth or decay?_______________
c) What is the initial value? _______________
d) Write a model describing this situation. _______________
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Example 4
A brand new Chevy Camaro cost $29,000. It is expected to decrease in value 12% per year.
a) Does this equation represent growth or decay? _______________
b) What is the rate of growth or decay?_______________
c) What is the initial value? _______________
d) Write a model describing this situation. _______________