Unit 4

Exponential and Logarithmic Functions Obj. 12 Exponential Functions Obj. 13 Logarithmic Functions Obj. 14 Exponential and Logarithmic Equations Obj. 15 Exponential Growth and Decay

Obj. 12 Exponential Functions

Unit 4 Exponential and Logarithmic Functions

Concepts & Objectives

Exponential Functions (Obj. #12) Use exponent properties to solve equations Substitute values into exponential functions

Properties of Exponents
Recall that for a variable x and integers a and b:
x a i x b = x a+ b

xa = x a b xb

(x )
a

= x ab

xa b = b xa xa = xb a = b

Simplifying Exponents
Example: Simplify

25x 3 y 2 z 2 1. = 5x 31 y 22 z 25 = 5x 2 y 4 z 3 5xy 2 z 5
2. 2r s t
23

2 3

= 24 r
1 2

4 ( 2 ) 4 ( 3 ) 4

t = 16r 8 s 12t 4
2 1 3 2

3. 5 y i 6 y

= (5)( 6 ) y

= 30 y

1 6

Exponential Functions
If a > 0 and a 1, then

f ( x ) = ax
defines the exponential function with base a. Example: Graph f ( x ) = 2x Domain: ( ) Range: ( ) y-intercept: ( 1)

Exponential Functions
Characteristics of the graph of f ( x ) = a x :
1 1. The points 1 a
2. 3. 4.

1)

(1 a )

are on the graph.

If a > 1 then f is an increasing function; if < a < 1 then f is a decreasing function. The x-axis is a horizontal asymptote. The domain is ( ) and the range is ( ).

Exponential Equations
Exponential equations are equations with variables as exponents. If you can re-write each side of the equation using a common base then you can set the exponents equal to each other and solve for the variable. Example: Solve 5x =
1 125

125 = 53

5x = 53 x = 3

Exponential Equations
Example: Solve 3x +1 = 9x 3 x 3 x +1 2 3 = 3 9 = 32

( )

3x +1 = 3 ( ) 3x +1 = 32 x 6 x + 1 = 2x 6 7=x
2 x 3

Exponential Equations
To solve an equation with exponents remember you can undo the exponent by using the reciprocal. Solve b5 2 = 243

(b )
5 2

= ( 243)

b=9

Compound Interest
The formula for compound interest (interest paid on both principal and interest) is an important application of exponential functions. Recall that the formula for simple interest, I = Prt, where P is principal (amount deposited), r is annual rate of interest, and t is time in years.

Compound Interest
Now, suppose we deposit $1000 at 10% annual interest. At the end of the first year, we have I = (1000)( 0.1) = 100 so our account now has 1000 + .1(1000) = $1100. At the end of the second year, we have I = (1100)( .1) = 110 so our account now has 1100 + .1(1100) = $1210.

Compound Interest
Another way to write 1000 + .1(1000) is 1000 (1 + .1)

After the second year, this gives us

1000 (1 + .1) + .1(1000 (1 + .1) ) = 1000 (1 + .1)(1 + .1)

= 1000 (1 + .1)
2

Compound Interest
If we continue, we end up with
Year 1 2 3 4 t Account $1100 $1210 $1331 $1464.10 1000(1 + .1) 1000(1 + .1)2 1000(1 + .1)3 1000(1 + .1)4 1000(1 + .1)t

This leads us to the general formula.

Compound Interest Formulas

For interest compounded n times per year: r A = P 1 + n For interest compounded continuously: A = Pe rt where e is the irrational constant 2.718281
tn

Examples
1.

If $2500 is deposited in an account paying 6% per year compounded twice per year, how much is the account worth after 10 years with no withdrawals? 2(10 ) .06 A = 2500 1 + = $4515.28 2 What amount deposited today at 4.8% compounded quarterly will give $15,000 in 8 years? 4( 8 ) .048 15000 = P 1 + 4 15000 P (1.4648 ) P = $10,240.35

2.

Examples
3.

If $8000 is deposited in an account paying 5% interest compounded continuously, how much is the account worth at the end of 6 years?
.05 6

A = 8000e ( )( ) A = $10,798.87 4. Which is a better deal, depositing $7000 at 6.25% compounded every month for 5 years or 5.75% compounded continuously for 6 years? .0575 6 12(5 ) A = 7000e ( )( ) .0625 A = 7000 1 + = $9883.93 12 = $9560.11

Homework
College Algebra Page 429: 51-66, (3s), 67, 68, 69-78 (3s), 83 Classwork: Algebra & Trigonometry Page 247: 21-45 (3s)