5.6 Applications and Models: Growth and Decay; Compound Interest

  • Solve applied problems involving exponential growth and decay.

  • Solve applied problems involving compound interest.

Exponential functions and logarithmic functions with base e are rich in applications to many fields such as business, science, psychology, and sociology.

Population Growth

The function

P(t)=P0ekt, k>0,

is a model of many kinds of population growth, whether it be a population of people, bacteria, smartphones, or money. In this function, P0 is the population at time 0, P is the population after time t, and k is called the exponential growth rate. The graph of such ...

Get Algebra and Trigonometry, 5th Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.