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Applying Exponential Functions

Videos, worksheets, games and acivities 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.

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.

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.

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