Question 545839
Explain how exponential functions are relevant and applicable to real life
situations.
Think of a real life situation that can be represented by an exponential
function.
Write a function to represent the situation.
Label all variables.
Explain how you wrote the function.
Graph your equation.
:
One example is the accumulated amt of $ having compound interest, like a retirement account etc
A = {{{P*(1+(r/n))^(nt)}}}
where
A = accumulated amt after t time
P = initial amt deposited
r = interest rate in decimals
n = compounded times per year
t = no. years
:
Assume an amt deposit, P = $10000, interest rate of 8%, compounded 4 times a year.
f(t) = A
f(t) = 10000*{{{(1+(.08/4))^(4t)}}}
f(t) = {{{10000*(1.02)^(4t)}}} is the function
:
to graph it rewrite the equation to: y = {{{10000*(1.02)^(4x)}}}
{{{ graph( 300, 200, -10, 40, -10000, 100000, 10000*(1.02)^(4x)) }}}
amt on the y axis, years on the x axis
:
You can see after 20 yrs, you will about about $48,750