Unit 6 Review for Exam

Front

What is exponential growth?

Back

Exponential growth occurs when a quantity increases by a consistent percentage over a period of time, resulting in a rapid increase as time progresses.

Front

What is the formula for exponential growth?

Back

The formula is y = a(1 + r)^t, where 'a' is the initial amount, 'r' is the growth rate, and 't' is the time period.

Front

What is exponential decay?

Back

Exponential decay occurs when a quantity decreases by a consistent percentage over a period of time, leading to a rapid decrease as time progresses.

Front

What is the formula for exponential decay?

Back

The formula is y = a(1 - r)^t, where 'a' is the initial amount, 'r' is the decay rate, and 't' is the time period.

Front

How do you calculate the future value of an investment with exponential growth?

Back

Use the formula: Future Value = Present Value * (1 + growth rate)^number of periods.

Front

How do you calculate the future value of an investment with exponential decay?

Back

Use the formula: Future Value = Present Value * (1 - decay rate)^number of periods.

Front

What does a 25% growth rate mean?

Back

It means that the quantity increases by 25% of its current value each time period.

Front

What does a 3% decay rate mean?

Back

It means that the quantity decreases by 3% of its current value each time period.

Front

If a population of mosquitoes is 4,000 and grows at 25% per month, how many will there be after 4 months?

Back

There will be approximately 9,765 mosquitoes after 4 months.

Front

If a printer worth $35,000 depreciates at 5% per year, what will it be worth in 8 years?

Back

The printer will be worth approximately $23,219.72 in 8 years.