Lesson 6.

1
Exponential Growth and
Decay Functions

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Warm-Up

Complete the table.

y = 2x y = 2(3)x

x y x y
−1 −1
0 0
1 1
2 2

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Learning Target:
Write and graph exponential growth and decay functions.

Success Criteria:
• I can identify and graph exponential growth and decay functions.
• I can write exponential growth and decay functions.
• I can solve real-life problems using exponential growth and decay functions.

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Explore It! Describing Exponential Growth

Work with a partner. You are studying bacteria growth in a laboratory.

a. The study starts with a population of 100 bacteria. You notice that the population doubles
every hour. Complete the table.

Time (hours), t 0 1 2 3 4 5
Population, P

b. Write a model that represents the population P of the bacteria after t hours.
c. Use the model in part (b) to complete the table. By what factor does the population
increase every half hour? Explain your reasoning.
1 3 5
Time (hours), t 0 1 2 3
2 2 2
Population, P

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 Explore It! Describing Exponential Growth
Work with a partner. You are studying bacteria growth in a laboratory.
d. Use the model in part (b) to complete the table. By what factor does the
population increase every 20 minutes? Explain your reasoning.

1 2 4 5
Time (hours), t 0 1 2
3 3 3 3
Population, P

e. Create a graph that shows the population P after t hours. Would you
expect the actual bacteria population to closely follow this model as
t increases? Explain your reasoning.
f. The population P of a different type of bacteria after t hours can be
CONSTRUCT AN represented by
ARGUMENT
Will the two bacteria P = 10(3)t.
populations ever be
equal? Explain.
How does the growth pattern of this bacteria compare with the growth
rate of the bacteria in parts (a)–(e)?
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 Exponential Growth and Decay Functions
An exponential function has the form y = abx, where a ≠ 0 and the
Vocabulary base b is a positive real number other than 1. If a > 0 and b > 1,
exponential function, p. 314 then y = abx is an exponential growth function, and b is called the
exponential growth function, growth factor. The simplest type of exponential growth function has
p. 314 the form y = bx.
growth factor, p. 314
asymptote, p. 314
exponential decay function,
p. 314
decay factor, p. 314

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KEY IDEA

Parent Function for Exponential Growth Functions

The function f(x) = bx, where b > 1, is the parent function for the family
of exponential growth functions with base b. The graph shows the general
shape of an exponential growth function.

The domain of f(x) = bx is all real numbers. The range is y > 0.

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KEY IDEA
If a > 0 and 0 < b < 1, then y = abx is an exponential decay function,
and b is called the decay factor.

Parent Function for Exponential Decay Functions

The function f(x) = bx, where 0 < b < 1, is the parent function for the family
of exponential decay functions with base b. The graph shows the general
shape of an exponential decay function.

The domain of f(x) = bx is all real numbers. The range is y > 0.

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 Example 1 Graphing Exponential Growth and Decay Functions
Tell whether each function represents exponential growth or exponential
decay. Then graph the function and describe the end behavior.
1 x
a. y = 2 x b. y =
2
SOLUTION
a. Step 1 Identify the value of the base. The base, 2, is greater than 1,
so the function represents exponential growth.
(3, 8) Step 2 Make a table of values.

y = 2x x −2 −1 0 1 2 3
1 1
(2, 4) y 1 2 4 8
4 2
(−1, 1)
2 (1, 2) Step 3 Plot the points from the table.
(−2, 1)
4 (0, 1) Step 4 Draw, from left to right, a smooth curve that begins just above
the x-axis, passes through the plotted points, and moves up
to the right. As x → −∞, y → 0. As x → +∞, y → +∞.
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 Example 1 Graphing Exponential Growth and Decay Functions
Tell whether each function represents exponential growth or exponential
decay. Then graph the function and describe the end behavior.
1 x
a. y = 2 x b. y =
2
SOLUTION
1
b. Step 1 Identify the value of the base. The base, , is greater than 0
2
and less than 1, so the function represents exponential decay.
(−3, 8)
Step 2 Make a table of values.

x −3 −2 −1 0 1 2
1 x
(−2, 4) y =
2
1 1
y 8 4 2 1
2 4
(−1, 2) (1, 1)
2 Step 3 Plot the points from the table.
(0, 1) (2, 1)
4 Step 4 Draw, from right to left, a smooth curve that begins just
above the x-axis, passes through the plotted points, and
moves up to the left. As x → −∞, y → +∞. As x → +∞, y → 0.
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Determine whether the function represents exponential growth or exponential decay.
Then graph the function and describe the end behavior.
2 x
1. y = 4x 2. y =
3

3. f(x) = (0.25)x 4. f(x) = (1.5)x

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5. Let f(x) = 3x. What transformations of f result in exponential growth functions?
What transformations result in exponential decay functions? Explain your reasoning.

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Exponential Models
Some real-life quantities increase or decrease by a fixed percent each year (or some
other time period). The amount y of such a quantity after t years can be modeled by
one of these equations:

Exponential Growth Model Exponential Decay Model

y = a(1 + r)t y = a(1 − r)t

Note that a is the initial amount and r is the percent increase or decrease written as a
decimal. The quantity 1 + r is the growth factor, and 1 − r is the decay factor.

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 Example 2 Modeling Real Life
The value of a car y (in thousands of dollars) can be approximated by the model
y = 25(0.85)t, where t is the number of years since the car was purchased.
a. Determine whether the model represents exponential growth or
exponential decay.
b. Identify the annual percent increase or decrease in the value of the car.
c. Estimate when the value of the car will be $8000.
SOLUTION
a. The base, 0.85, is greater than 0 and less than 1, so the model
represents exponential decay.

APPLY b. Because t is given in years and the decay factor

MATHEMATICS 0.85 = 1 − 0.15, the annual percent decrease is
What are the 0.15, or 15%.
meanings of the
percent decrease and c. Use technology to determine that y ≈ 8
the decay factor in when t = 7. After 7 years, the value of
this situation?
the car will be about $8000.
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Example 3 Writing an Exponential Model

In 2015, the population of St. Johns County, Florida was about 226.4 thousand.
During the next 4 years, the population increased by about 4% each year. Write
an exponential model that represents the population y (in thousands) t years
after 2015. Then estimate the population of St. Johns County in 2019.
SOLUTION
The initial amount (in thousands) is a = 226.4. The percent increase is r = 0.04,
so use an exponential growth model.
y = a(1 + r)t Write exponential growth model.
= 226.4(1 + 0.04)t Substitute 226.4 for a and 0.04 for r.
= 226.4(1.04)t Simplify.
To estimate the population of St. Johns County in 2019, evaluate the model
when t = 4.

y = 226.4(1.04)4 ≈ 264.9 thousand.

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6. In Example 2, the value of the car can be approximated by the model y = 25(0.9)t. Identify
the annual percent decrease in the value of the car. Estimate when the value of the car
will be $8000.

7. In Example 3, assume that starting in 2019, the population of St. Johns County increases
by 3.2% each year for the next 5 years. Use a model to estimate when the population will
be 300,000.

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8. Which characteristic of an exponential decay function does not belong with the other
three? Explain your reasoning.

base of 0.8 percent decrease of 20%

decay factor of 0.8 80% decrease

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 Example 4 Rewriting an Exponential Function

The amount y (in grams) of the radioactive isotope

chromium-51 remaining after t days is y = a(0.5)t/28, where a
is the initial amount (in grams). What percent of the
chromium-51 decays each day?
SOLUTION
y = a(0.5)t/28 Write original function.
Chromium-51 is used in
medical research. It can be = a (0.5)1/28 t Power of a Power Property
used as a tracer in blood for
studies of red blood cells. ≈ a(0.9755)t Evaluate power.

= a(1 − 0.0245)t Rewrite in form y = a(1 − r)t.

ANALYZE A
PROBLEM
Explain why it makes
sense for the graph to The daily decay rate is about 0.0245, or 2.45%.
have an asymptote in
this situation.

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 KEY IDEA

Compound interest is interest paid on an initial investment, called the

principal, and on previously earned interest. Interest earned is often
expressed as an annual percent, but the interest is usually compounded
more than once per year. So, the exponential growth model y = a(1 + r)t
must be modified for compound interest problems.

Compound Interest
Consider an initial principal P deposited in an account that pays interest at
an annual rate r (expressed as a decimal), compounded n times per year.
READING The amount A in the account after t years is given by
The annual rate r is often nt
r
referred to as the annual A=P 1+ n .
percentage rate, or APR.

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 Example 5 Finding the Balance in an Account

You deposit $9000 in an account that pays 1.46% annual interest. Find the
balance after 3 years when the interest is compounded quarterly.

SOLUTION
Use the compound interest formula.

r nt
DECOMPOSE A A=P 1+ Write compound interest formula.
n
PROBLEM
You can write the
0.0146 4•3
P = 9000, r = 0.0146, n = 4, t = 3
formula as = 9000 1 +
A = 9000(1.00365)4t. 4
Notice that this formula
consists of the product
≈ 9402.21. Use technology. compounded quarterly
of the principal, 9000,
and a factor
independent of the
principal, (1.00365)4t. The balance after 3 years is $9402.21.

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9. The amount y (in grams) of the radioactive isotope iodine-123 remaining after t hours is
y = a(0.5)t/13, where a is the initial amount (in grams). What percent of the iodine-123
decays each hour?

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10. You deposit $500 in an account that pays 2.5% annual interest. Find the balance
after 2 years when the interest is compounded daily.

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 In-Class Practice
Mini-Assessment

5 x
1. Determine whether y = represents exponential growth or exponential decay. Then
graph the function. 4

2. The value of a car y (in thousands of dollars) can be approximated by the model
y = 24(0.83)t, where t is the number of years since the car was purchased.
a. Determine whether the model represents exponential growth or exponential decay.
b. Identify the annual percent increase or decrease in the value of the car.
c. Estimate when the value of the car will be $6500.
3. In 2010, the population of a city was about 1.6 million. During the next 10 years, the
population increased by about 1.76% each year.
a. Write an exponential model that represents the population y (in millions) t years
after 2010.
b. Estimate the population of the city in 2019.
4. The amount y (in grams) of the radioactive isotope rubidium-86 remaining after t days
is y = a(0.5)t/19, where a is the initial amount (in grams). What percent of the
rubidium-86 decays each day?
5. You deposit $7900 in an account that pays 1.29% annual interest. Find the balance
after 5 years when the interest is compounded quarterly.

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