Exponential Functions
RULES OF EXPONENTS
Let a, b, x, and y be real numbers with a > 0
and b > 0. Then
(a )
x+ y y
a a = a
x y
, x
=a ,xy
x
a
y
x− y
=a , a 0 = 1,
a
x
1 1
( ab ) =a b , −x
x x x
a = x = .
a a
EXPONENTIAL FUNCTION
A function f of the form
f (x ) = a x , a 0 and a 1,
is called an exponential function with base
a. Its domain is (–∞, ∞).
EXAMPLE 1 Evaluating Exponential Functions
a. Let f (x ) = 3 . Find f (4 ).
x−2
b. Let g (x ) = −2 10 x. Find g (−2 ).
x
1 3
c. Let h (x ) = . Find h − .
9 2
d. Let F(x) = 4x. Find F(3.2).
EXAMPLE 1 Evaluating Exponential Functions
Solution
a. f ( 4 ) = 3
4− 2
=3 =92
1 1
b. g ( −2 ) = −2 10 = −2 2 = −2
−2
= −0.02
10 100
3
−
3 1
3 3
= (9 )
2 −
−1 2
c. h − = = 9 = 27
2
2 9
d. F(3.2) = 43.2 ≈ 84.44850629
Graphing an Exponential Function with
EXAMPLE 2
Base a > 1 – Exponential Growth
Graph the exponential function f (x ) = 3 . x
Solution
Make a table of values.
Plot the points and draw a smooth curve.
Graphing an Exponential Function with
EXAMPLE 2
Base a>1
Solution continued
This graph is typical for exponential functions
when a > 1.
Graphing an Exponential Function with
EXAMPLE 3
Base 0 < a < 1 – Exponential Decay
x
1
Sketch the graph of y = .
2
Solution
Make a table of values.
Plot the points and draw a smooth curve.
Graphing an Exponential Function with
EXAMPLE 3
Base 0 < a < 1
Solution continued
As x increases
in the positive
direction, y
decreases
towards 0.
PROPERTIES OF EXPONENTIAL FUNCTIONS
Let f (x) = ax, a > 0, a ≠ 1.
1. The domain of f (x) = ax is (–∞, ∞).
2. The range of f (x) = ax is (0, ∞); the entire graph lies
above the x-axis.
3. For a > 1, Exponential Growth
(i) f is an increasing function, so the graph rises to
the right.
(ii) as x → ∞, y → ∞.
(iii) as x → –∞, y → 0.
4. For 0 < a < 1, - Exponential Decay
(i) f is a decreasing function, so the graph falls to the
right.
(ii) as x → – ∞, y → ∞.
(iii) as x → ∞, y → 0.
5. The graph of f (x) = ax has no x-intercepts, so it never
crosses the x-axis. No value of x will cause f (x) = ax to
equal 0.
6. The graph of is a smooth and continuous curve, and it
passes through the points
7. The x-axis is a horizontal asymptote for every
exponential function of the form f (x) = ax.
TRANSFORMATIONS ON EXPONENTIAL
FUNCTION f (x) = ax
Transformation Equation Effect on Equation
Horizontal y = ax+b Shift the graph of y
Shift = ax, | b| units
(i) left if b > 0.
(ii) right if b < 0.
Vertical y = ax + b Shift the graph of y =
Shift ax, | b| units
(i) up if b > 0.
(ii) down if b < 0.
TRANSFORMATIONS ON EXPONENTIAL
FUNCTION f (x) = ax
Transformation Equation Effect on Equation
Stretching or y = cax Multiply the y
Compressing coordinates by c. The
(Vertically) graph of y = ax is
vertically
(i) stretched if c > 1.
(ii) compressed if
0 < c < 1.
TRANSFORMATIONS ON EXPONENTIAL
FUNCTION f (x) = ax
Transformation Equation Effect on Equation
Reflection y = –ax Reflect the graph of y
= ax in the
x-axis.
y = a–x Reflect the graph of y
= ax in the
y-axis.
EXAMPLE 6 Sketching Graphs
Use transformations to sketch the graph of each
function.
a. f ( x ) = 3x − 4 b. f ( x ) = 3x+1
c. f ( x ) = −3x d. f ( x ) = −3x + 2
State the domain and range of each function and
the horizontal asymptote of its graph.
EXAMPLE 6 Sketching Graphs
Solution
a. f ( x ) = 3x − 4
Domain: (–∞, ∞)
Range: (–4, ∞)
Horizontal
Asymptote: y = –4
EXAMPLE 6 Sketching Graphs
Solution continued
b. f ( x ) = 3x+1
Domain: (–∞, ∞)
Range: (0, ∞)
Horizontal
Asymptote: y = 0
EXAMPLE 6 Sketching Graphs
Solution continued
c. f ( x ) = −3 x
Domain: (–∞, ∞)
Range: (–∞, 0)
Horizontal
Asymptote: y = 0
EXAMPLE 6 Sketching Graphs
Solution continued
d. f ( x ) = −3 + 2
x
Domain: (–∞, ∞)
Range: (–∞, 2)
Horizontal
Asymptote: y = 2
General Exponential Growth/Decay Model
Rate of decay (r < 0),Growth (r > 0)
Amount after t time periods
Original amount Number of time periods
COMPOUND INTEREST – Growth
Compound interest is the interest paid on both the principal and
the accrued (previously earned) interest. It is an application of
exponential growth.
Interest that is compounded annually is paid once a year. For
interest compounded annually, the amount A in the account after
t years is given by Rate of decay (r < 0),Growth (r > 0)
Amount after t time
periods Number of time
periods
Original amount
EXAMPLE 2 Calculating Compound Interest
Juanita deposits $8000 in a bank at the interest
rate of 6% compounded annually for five
years.
a. How much money will she have in her
account after five years?
b. How much interest will she receive?
EXAMPLE 2 Calculating Compound Interest
Solution
a. Here P = $8000, r = 0.06, and t = 5.
b. Interest = A − P
= $10,705.80 − $8000 = $2705.80.
COMPOUND INTEREST FORMULA
nt
r
A = P 1+
n
A = amount after t years
P = principal
r = annual interest rate (expressed as a decimal)
n = number of times interest is compounded
each year
t = number of years
Using Different Compounding Periods to
EXAMPLE 3
Compare Future Values
If $100 is deposited in a bank that pays 5%
annual interest, find the future value A after one
year if the interest is compounded
(i) annually.
(ii) semiannually.
(iii) quarterly.
(iv) monthly.
(v) daily.
Using Different Compounding Periods to
EXAMPLE 3
Compare Future Values
Solution
In the following computations, P = 100,
r = 0.05 and t = 1. Only n, the number of times
interest is compounded each year, changes.
Since t = 1, nt = n(1) = n.
nt
r
(i) Annual A = P 1 +
Compounding: n
A = 100 (1 + 0.05 ) = $105.00
Using Different Compounding Periods to
EXAMPLE 3
Compare Future Values
(ii) Semiannual Compounding:
2
r
A = P 1 +
n
2
0.05
A = 100 1 + $105.06
2
(iii) Quarterly Compounding:
4
r
A = P 1 +
4
4
0.05
A = 100 1 + $105.09
4
Using Different Compounding Periods to
EXAMPLE 3
Compare Future Values
(iv) Monthly Compounding:
12
r
A = P 1 +
12
12
0.05
A = 100 1 + $105.12
12
(v) Daily Compounding:
365
r
A = P 1 +
365
365
0.05
A = 100 1 + $105.13
365
EXAMPLE 8 Bacterial Growth
A technician to the French microbiologist Louis
Pasteur noticed that a certain culture of bacteria
in milk doubles every hour. If the bacteria count
B(t) is modeled by the equation
B (t ) = 2000 2 t ,
with t in hours, find
a. the initial number of bacteria,
b. the number of bacteria after 10 hours; and
c. the time when the number of bacteria will be
32,000.
EXAMPLE 8 Bacterial Growth
Solution
a. Initial size
B0 = B ( 0 ) = 2000 20 = 2000 1 = 2000
b. B (10 ) = 2000 2 = 2, 048,000
10
c. Find t when B(t) = 32,000
32,000 = 2000 2 t
2 =2
4 t
16 = 2 t
4=t
After 4 hours, the number of bacteria will be
32,000.
THE VALUE OF e
As h gets larger and larger,
h
1
1 +
h
gets closer and closer to a fixed number. This
irrational number is denoted by e and is sometimes
called the Euler number.
The value of e to 15 places is
e = 2.718281828459045.
CONTINUOUS COMPOUND
FORMULA
A = Pe rt
A = amount after t years
P = principal
r = annual rate (expressed as a decimal)
t = number of years
EXAMPLE 4 Calculating Continuous Compound Interest
Find the amount when a principal of $8300 is
invested at a 7.5% annual rate of interest
compounded continuously for eight years and
three months.
Solution
P = $8300 and r = 0.075. Convert eight years
and three months to 8.25 years.
A = Pe rt
( 0.075)(8.25)
A = $8300e
$15, 409.83
EXAMPLE 5 Calculating the Amount of Repaying a Loan
How much money did the government owe
DeHaven’s descendants for 213 years on a
$450,000 loan at the interest rate of 6%?
Solution
a. With simple interest,
A = P + Prt = P (1 + rt )
A = $450,000 1 + ( 0.06 )( 213)
= $6.201 million.
EXAMPLE 5 Calculating the Amount of Repaying a Loan
Solution continued
b. With interest compounded yearly,
A = P (1 + r ) = $450,000 (1 + 0.06 )
t 213
A $1.105 10 11
= $110.500 million.
c. With interest compounded quarterly,
4t 4( 213)
r 0.06
A = P 1 + = $450, 000 1 +
4 4
A $1.45305 10 11
= $145.305 billion.
EXAMPLE 5 Calculating the Amount of Repaying a Loan
Solution continued
d. With interest compounded continuously,
0.06( 213)
A = Pe = $450,000e
rt
A $1.5977 1011
= $159.77 billion.
Notice the dramatic difference between
quarterly and continuous compounding and
the dramatic difference between simple
interest and compound interest.
THE NATURAL EXPONENTIAL FUNCTION
The exponential function
f ( x) = e x
with base e is so prevalent in the sciences
that it is often referred to as the exponential
function or the natural exponential function.
EXAMPLE 6 Sketching a Graph
Use transformations to sketch the graph of
Solution
Start with the
graph of y = ex.
EXAMPLE 6 Sketching a Graph
Use transformations to sketch the graph of
Solution coninued
Shift the graph of
y = ex one unit
right.
EXAMPLE 6 Sketching a Graph
Use transformations to sketch the graph of
Solution continued
Shift the graph of
y = ex – 1 two units
up.
MODEL FOR EXPONENTIAL
GROWTH OR DECAY
A ( t ) = A0e kt
A(t) = amount at time t
A0 = A(0), the initial amount
k = relative rate of growth (k > 0) or decay
(k < 0)
t = time
EXAMPLE 7 Modeling Exponential Growth and Decay
In the year 2000, the human population of the
world was approximately 6 billion and the
annual rate of growth was about 2.1%. Using the
model on the previous slide, estimate the
population of the world in the following years.
a. 2030
b. 1990
EXAMPLE 7 Modeling Exponential Growth and Decay
Solution
a. The year 2000 corresponds to t = 0. So
A0 = 6 (billion), k = 0.021, and 2030
corresponds to t = 30.
A ( 30 ) = 6e ( 0.021)( 30 )
11.265663
The model predicts that if the rate of growth is
2.1% per year, over 11.26 billion people will be
in the world in 2030.
EXAMPLE 7 Modeling Exponential Growth and Decay
Solution
b. The year 1990 corresponds to t = −10.
A ( −10 ) = 6e ( 0.021)( −10 )
4.8635055
The model predicts that the world had over 4.86
billion people in 1990. (The actual population
in 1990 was 5.28 billion.)
