Or

Author:
Seth Marx

To develop an understanding of exponential growth and exponential decay: how to determine which is which, and how to figure out a problem involving growth and decay.

We go over the basics of exponential growth and decay and then a couple sample problems.

Co-author: Rachel Kaplan

Tutorial

__ Exponential Growth__: a function or model which begins increasing at a very slow rate, then keeps growing faster and faster; functions in the form of y = P(1 + r)

__ Exponential Decay__: a function or model which begins decreasing at a very slow rate, then keeps declining faster and faster; functions in the form of y = P(1 - r)

__ y = P(1±r)^{t}__: the function that determines exponential growth and exponential decay; for exponential growth, use a "+", and for decay, use a "-";