Exponential Growth and Decay Models

8.2: Exponential Growth and Decay Models. Original editorial SAT preparation with three worked examples, ten flashcards, and thirty practice questions. Educator-review draft.

Lesson 2 of 63 parts Practice Flashcards
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Growth factors

Objective: Evaluate a repeated growth model.

Prerequisite skills: percent multipliers and powers. A rate r expressed as a decimal gives multiplier 1+r for each period. Multiply the starting amount by that factor once per elapsed period. The model assumes the same proportional rate repeatedly. Common error: multiplying by r alone and losing the original amount. Restrictions and interpretation: A growth factor is 1+r and a decay factor is 1−r; use a consistent time unit.

Formulas

  • A(t)=A0(1+r)tA(t)=A₀(1+r)^t

Worked examples

Try itA population begins at 250 and grows 50% per year. What does the model predict after 2 years?Show answer

The growth factor is 1+0.50=1.5. After two years the model is 250(1.5)²=250×2.25=562.5. Therefore the requested answer is 562.5.

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