Exponential Functions Applications
More Lessons for PreCalculus
Videos, worksheets, solutions, and activities to help PreCalculus students learn how to apply exponential functions.
Compound Interest (Finite Number of Calculations)
One real world application of exponential equations is in compound interest. The formula for compound interest with a finite number of calculations is an exponential equation. We can solve for a parameter of this equation, and can use logarithms to access parameters in the exponent. Students may be asked to solve compound interest problems with interest compounded biannually, monthly, or daily.
Deriving the Annual Compound Interest Formula
Compound Interest - More than Once Per Year.
This video discusses the formula, and do a few simple examples.
Compound Interest - More than Once Per Year - Part 2.
This video gives another example using the compound interest formula.
Continuous Compound Interest
Problems that involve continuous compound interest use a different equation from problems that have finitely compounded interest, but the continuous compound interest equation is also an exponential equation. We use many of the same methods for calculating continuous compound interest as we do finitely compounded interest. To calculate compound interest, we can use logarithms and methods for solving exponential equations.
Continuously Compound Interest calculus problem example.
Exponential Growth and Decay
Exponential growth refers to an amount of substance increasing exponentially. Exponential growth is a type of exponential function where instead of having a variable in the base of the function, it is in the exponent. Exponential decay and exponential growth are used in carbon dating and other real-life applications.
How to find the doubling time of a population when the growth rate is given.
Word Problem Solving- Exponential Growth and Decay
Rotate to landscape screen format on a mobile phone or small tablet to use the Mathway widget, a free math problem solver that answers your questions with step-by-step explanations.
You can use the free Mathway widget below to practice Algebra or other math topics. Try the given examples, or type in your own problem and check your answer with the step-by-step explanations.