Exponential Growth & Decay
What is exponential growth?
- When a quantity grows exponentially it is increasing from an original amount, P, by r % each year for n years
- Some questions use a different timescale, such as each day, or each minute
- Real-life examples of exponential growth include
- Compound interest
- Population increases
- Bacterial growth
- Number of people infected by a virus
What is exponential decay?
- When a quantity exponentially decays it is decreasing from an original amount, P, by r % each year for n years
- Some questions use a different timescale, such as each day, or each minute
- Real-life examples of exponential decay include
- Depreciation
- The temperature of hot water cooling down
- The value of a car decreasing over time
- Radioactive decay (how radioactive a substance is over time)
Examiner Tip
- Look out for how the question wants you to give your final answer.
- E.g., It may want the final amount to the nearest thousand.
Worked example
An island has a population of 25 000 people. The population increases exponentially by 4% every year.
Find the population after 13 years, giving your answer to the nearest hundred.
The question says “increases exponentially”
The population increases by 4% each year, so the multiplier is 1.04
The time period is 13 years, so the multiplier is applied 13 times, 1.0413
Therefore the final value after 13 years will be
Work out this value on your calculator
41626.83…
Round this value to the nearest hundred
41 600 people
The temperature of a cup of coffee exponentially decays from 60°C by 32% each hour.
What is the temperature of the cup of coffee after 3 hours? Round your answer to 1 decimal place.
The temperature decreases by 32% each hour, so the multiplier is 1 - 0.32 = 0.0.68
The time period is 3 hours, so the multiplier is applied 3 times, 0.683
Therefore the final value after 3 hours will be
Work out this value on your calculator
18.86592
Round to 1 decimal place