Chapter
4.1 Exponential Functions and Their Graphs
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College Algebra by Example Series |
Key Concepts: Fundamental properties of Exponential Functions and their graphs
Skills to Learn:
1. Know about rational and irrational exponents of exponential functions
2. Know how to recognize exponential functions and graph them
3. Know how to calculate applications of exponential functions involving compounding
4. Know the relationship between periodic and continuous compounding
5. Know how to transform exponential functions: vertical and horizontal Shifts
Exponential Functions: With rational and irrational exponents
Exponential
functions are functions of the form:
, where x can be any real number and b any positive number except 1 Exponential functions can have both rational and irrational exponents
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Example 1 - An increasing (i.e. The coefficient of x is positive
or b greater than 1)
Exponential Function with a rational exponent
Increasing Functions: as x get large, y gets larger also |
Example 2 - A decreasing (i.e. The coefficient of x is negative
or b less than 1) Exponential
Function with a rational exponent
Decreasing Functions: as x get large, y gets smaller |
Example 3 - An increasing Exponential Function with
an irrational exponent
Increasing Functions: as x get large, y gets larger also |
Example 4 - A decreasing (i.e. The coefficient of x is negative
or b less than 1) Exponential
Function with a rational exponent
Decreasing Functions: as x get large, y gets smaller |
Simplifying Irrational Exponents
Example 5. Simplify Remember: So |
Example 6. Simplify Remember: So |
Graphing Exponential Functions
Things
to Know:
(1) Increasing Exponential Function when either b is > 1 or the coefficient of x is positive (2) Decreasing Exponential Function when either b is < 1 or the coefficient of x is negative (3) The y-intercept is the coefficient of b, in most cases 1, so if , the y-intercept is (0, a) (4) When , the y-intercept is (0, 1)
(5) The graph has a horizontal asymptotes at y = 0 (6) Domain is and Range is |
Example 7 - Graph
First Create Table of Values
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Graph
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Example 8 - Graph
First Create Table of Values
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Graph
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Compound Interest
Given:
P as the principal or original deposit, r as the annual
interest rate, t as the number of years and n as the number
of times each year the balance is compounded (or is the principal plus the
interest).
Then the principal plus the compound interest is given by the formula: , Sometimes A is called the Future Value (FV) or the principal at time t. Continuous Compounding uses the formula: , where Often or the principal at time, t=0, the balance before any interest is earned or added. This P0 is called the present value (PV). Compound Interest:
When interest is compounded for various periods each year the value of n reflect that compounding:
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Example 9. What will
be the balance in a account after 6 years if the original balance was $20,000
and the account earned 5.25%, compounded yearly?
Given: yearly compounding - so n = 1, P = $20,000, rate r = 5.25/100 = 0.0525 and t = 6 years. Formula is , So
So balance after 6 years is $27,187.08
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Example 10. How much
interest would $10,000 earn in 5 years if compounded monthly at an annual
rate of 6%?
Given: monthly compounding - so n = 12, P = $10,000, rate r = 6/100 = 0.06 and t = 5 years Formula is = P + I (principal plus interest), so I, interest is found by I = Pt - P0 = Pt - 10000
So I = 13488.50 - 10000 = 3488.50 So interest is $3,488.50 |
Example 11. How much will $125,000
be worth in 25 years if compounded daily at nominal rate of 3.5% each year?
Given: daily compounding - so n = 365, P = $125,000, rate r = 3.5/100 = 0.035 and t = 25 years. Formula is , So = 299846.83 So balance after 25 years is $299,846.83 |
Example 12. How much will $125,000
be worth in 25 years if compounded continuously at an annual rate of 3.5%
each year?
Given: continuous compounding - so n = big, P = $125,000, rate r = 3.5/100 = 0.035 and t = 25 years. Formula is So So balance after 25 years is $299,859.41 |
Transformation fo Exponentials
(Vertical and Horzontal shifts)
Given
the exponential function
Horizontal transformation occurs when h is introduced in the function in this manner: , when h is positive the functions is shifted to the right by h units and : when h is negative, the functions is shifted to the left by h units Vertical transformation occurs when k is introduced in the function in this manner: , when k is positive the functions is moves upward by k units and : when k is negative the function moves down by k units |