7.

1 Graph Exponential Growth Functions

An exponential function has the form
where
other than 1. If
and
then the function
and is call the growth factor.

and the base is a positive number

is an exponential growth function,

Key Concept- Parent Function for Exponential Growth Functions

( )

where
is the parent function.

The x-axis is an asymptote of the graph. An asymptote

is a line that a graph approaches more and more
closely.

The graph rises from left to right, passing through the

points ( ) and ( ).

Domain: all real numbers.

Range:

Example 1- Graph the functions.

a)

b)

Translations- to graph a function of the form

. Then translate the graph horizontally by

c)

d)

( )

begin by sketching the graph of

units and vertically by units.

Example 2- Graph the functions.

a)

b)

c)

d)

( )

Exponential Growth Models- when a real-life quantity increases by a fixed percent each year (or
other time period), the amount of the quantity after years can be modeled by the equation
(
) where is the initial amount and is the percent increase expressed as a decimal.
Note:
is the growth factor.

Example 3- In 1970, the population of Kern County, CA was about 330,000. From 1970 to 2000,
the county population grew at an average annual rate of about 2.4%.
1) Write an exponential growth model giving the population of Kern County years after
1970.

2) About how many people lived in Kern County in 1990?

3) Graph the model. Use the graph to estimate the year when the population of Kern County
was about 400,000.

Key Concept- Compound Interest

Consider an initial principal deposited in an account that pays interest at an annual rate
(expressed as a decimal), compounded times per year. The amount in the account after
years is given by this equation:
(

Graphing Calculators need

to use ( ) around the .

Example 4- Find the balance in the account.

a) You deposit $2000 in an account that pays 4% annual interest. Find the balance after 3 years
if the interest is compounded daily.

b) You deposit $5500 in an account that pays 3.6% annual interest. Find the balance after 2
years if interest is compounded semiannually? Monthly?

Example 5- If you deposit $1000 in an account that pays 2% annual interest compounded daily,
about how many years will it take for the amount to double?