Growth and Decay

Exponential Functions

An exponential function is a nonlinear function of the form y = abx , where a 6= 0, b 6= 1,

and b > 0. The y-intercept is a in this case and is obtained by putting x = 0. As the
independent variable x changes by a constant amount, the dependent variable y is multiplied
by a constant factor (the y-values change by a factor of b as x increases by 1), which means
consecutive y-values form a constant ratio.
Example:
The function represented by the table

x 0 1 2 3
y 4 8 16 32

is an exponential function since as x increases by 1, y is multiplied by 2. The function is

y = 4 (2x ) in this case. On the other hand, the function represented by the table

x 0 1 2 3
y 2 4 12 48

is not exponential since as x increases by 1, y is not multiplied by a constant factor.

Exponential Growth and Decay

Definition: Exponential growth occurs when a quantity increases by the same factor over
equal intervals of time. A function of the form y = a(1 + r)t , where a > 0 and r > 0, is an
exponential growth function. In this case y = final amount, a = initial amount, r = rate of
growth (in decimal form), 1 + r = growth factor (where 1 + r > 1), t = time. Note that the
function is of the form y = abx , where b is replaced by 1 + r and x is replaced by t.
Definition: Exponential decay occurs when a quantity decreases by the same factor over
equal intervals of time. A function of the form y = a(1 − r)t , where a > 0 and 0 < r < 1, is
an exponential decay function. In this case y = final amount, a = initial amount, r = rate
of decay (in decimal form), 1 − r = decay factor (where 1 − r < 1), t = time. Similarly, the
function is of the form y = abx , where b is replaced by 1 − r and x is replaced by t.
Example:
1. Consider the table below.
x 0 1 2 3
y 5 10 20 40

As x increases by 1, y is multiplied by 2. So, the table represents an exponential

growth function.

1
2. Consider the table below.
x 0 1 2 3
y 270 90 30 10

As x increases by 1, y is multiplied by 1/3. So, the table represents an exponential

decay function.
3. Determine whether each function represents exponential growth or exponential decay,
and hence find the percent rate of change.
(a) y = 5(1.07)t
(b) f (t) = 0.2(0.98)t
Solution:
(a) The function is of the form y = a(1 + r)t , where 1 + r > 1. So it represents
exponential growth. In this case the growth factor is 1 + r = 1.07 so that r = 0.07.
Therefore, the rate of growth is 7%.
(b) The function is of the form y = a(1 − r)t , where 1 − r < 1. So it represents
exponential decay. In this case the decay factor is 1 − r = 0.98 so that r = 0.02.
Therefore, the rate of decay is 2%.
4. The inaugural attendance of an annual music festival is 150,000. The attendance y
increases by 8% each year.
(a) Write an exponential growth function that represents the attendance after t years.
(b) How many people will attend the festival in the fifth year? Round your answer to
the nearest thousand.
Solution:
(a) The initial amount is 150000, and the rate of growth is 8%, or 0.08. The exponential
growth function is

y = a(1 + r)t
= 150000(1 + 0.08)t
= 150000(1.08)t .

Therefore, the festival attendance is represented by y = 150000(1.08)t .

(b) During the first year t = 0 and during the fifth year t = 4. So, in the fifth year, we
have y = 150000(1.08)4 ≈ 204073. Therefore, about 204,000 people will attend the
festival in the fifth year.

2
Exercise:
A website has 500,000 members in 2020. The number y of members increases by 15% each
year.
(a) Write an exponential growth function that represents the website membership t years
after 2020.
(b) How many members will there be in 2026? Round your answer to the nearest ten
thousand.

Compound Interest

Compound interest is the interest earned on the principal and on previously earned interest.
Exponential growth functions are used in real-life situations involving compound interest.
Although interest earned is expressed as an annual rate, the interest is usually compounded
more frequently than once per year. So, the formula y = a(1 + r)t must be modified for
compound interest problems. The balance A of an account earning compound interest is
A = P (1 + nr )nt where P = principal (initial amount), r = annual interest rate (in decimal
form), t = time (in years), n = number of times interest is compounded per year. For interest
compounded yearly, you can substitute 1 for n in the formula to get A = P (1 + r)t .
Example:
1. A customer invests $100, 000 in an account that earns interest at a rate of 7.5% for 54
months. Determine how much money will be in the account if:
(a) interest is compounded quarterly.
(b) interest is compounded monthly.
Solution:
7.5 54
In this case P = 100000, r = 100 = 0.075 and t = 12 = 4.5.
(a) If the interest is compounded quarterly, then it is compounded 4 times a year.
So, after 54 months years we then have,

 r nt
A=P 1+
n
 4(4.5)
0.075
= 100000 1 +
4
= 100000 (1.01875)18
≈ $139706.69.

(b) If the interest is compounded monthly, then it is compounded 12 times a year.

Hence after 54 months years we then have,

3
  r nt
A=P 1+
n
 12(4.5)
0.075
= 100000 1 +
12
= 100000 (1.00625)54
≈ $139996.84.

From (a) and (b) above, compounding interest more times per year yields more money.
2. A deposit of $2500 is made into an account that earns interest at a rate of 12%. The
target is to have $4000 in the account after some time. How long should the money be
kept in the account if interest is compounded 6 times a year?
Solution:
12
In this case A = 4000, P = 2500, and r = 100 = 0.12. If interest is compounded 6 times

6t
a year, we have the equation 4000 = 2500 1 + 0.12 6
. This simplifies to 1.6 = (1.02)6t
so that ln 1.6 = ln (1.02)6t . Rewriting the equation we get ln 1.6 = 6t ln (1.02) so that
t = 6 ln 1.6
ln 1.02
= 3.956 years. Therefore, the amount should be kept in the account for 3.956
years to reach $4000.

Continuous Growth and Decay

In real-life there are many quantities where the growth/decay process is continuous. In such
cases the growth/decay process is governed (at least for a short time period) by the function,
Q = Q0 ekt where Q0 > 0 is the amount initially present at t = 0, and k is a non-zero constant.
If k is positive, then the function will grow without bound and is therefore an exponential
growth function. On the other hand, if k is negative, the function will die down to zero
and is therefore an exponential decay function. Interest compounded continuously as well
as short term population growth is often modeled by the exponential growth function, while
the decay of a radioactive element is governed by the exponential decay function.
Example:
1. In Example 1 above, if interest is compounded continuously, then after 54 months we
will have,

A = P ert
= 100000e(0.075)(4.5)
= 100000 (1.401439608)
≈ $140143.96.

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2. In Example 2 above, if interest is compounded continuously, we have 4000 = 2500e0.12t
which simplifies to 1.6 = e0.12t . Taking natural logarithm on both sides of the equation
we have ln 1.6 = ln e0.12t so that ln 1.6 = 0.12t. Hence, t = ln0.12
1.6
= 3.917 (to 3 d.p.).
Therefore, the amount should be kept in the account for 3.917 years to get $4000.
3. The growth of a colony of bacteria is given by the equation, Q = Q0 e0.195t . If there are
initially 500 bacteria present and t is given in hours determine each of the following.
(a) How many bacteria are there after a half of a day?
(b) How long will it take before there are 10000 bacteria in the colony?
Solution:
The equation for this starting number of bacteria is Q = 500e0.195t
(a) To obtain the number of bacteria after half of a day, we use t = 12 since t is in
hours. In this case we have Q = 500e0.195(12) = 500 (10.38123656) ≈ 5190.618. So,
after half of a day there are 5190 of the bacteria present.
(b) In this case we solve the exponential equation 10000 = 500e0.195t . Simplifying the
equation we get 20 = e0.195t . Taking natural logarithms we have ln 20 = ln e0.195t
ln 20
so that ln 20 = 0.195t. Hence, t = 0.195 = 15.3627. Therefore, it takes about 15.4
hours to reach 10000 bacteria.
4. Carbon 14 dating works by measuring the amount of Carbon 14 (a radioactive element)
that is in a fossil. All living things have a constant level of Carbon 14 in them and
once they die it starts to decay according to the formula, Q = Q0 e−0.000124t where t
is in years and Q0 is the amount of Carbon 14 present at death. Suppose that there
are 100 milligrams of Carbon 14 present at death.
(a) How much Carbon 14 will there be after 1000 years?
(b) How long will it take for half of the Carbon 14 to decay?
Solution:
(a) Taking Q0 = 100 gives the equation Q = 100e−0.000124t . Taking t = 1000 we get
Q = 100e−0.000124(1000) = 100 (0.88337984) = 88.33798409 milligrams. So, there are
approximately 88.338 milligrams left after 1000 years.
(b) To determine how long it will take until there is 50 milligrams of the Carbon 14
left, we need to solve the equation 50 = 100e−0.000124t . Dividing through by 100
and then taking natural logarithms on both sides we have ln 0.5 = ln e−0.000124t
ln 0.5
so that ln 0.5 = −0.000124t. Hence, t = −0.000124 = 5589.896617. Therefore, it will
take 5589.897 years for half of the Carbon 14 to decay. This number is called the
half-life of Carbon 14.

5
Approximations of Real Numbers by Decimals
Decimal expansions of real numbers are very important in appications of mathematics. Irra-
tional numbers such as

π = 3.141592653589793238462643383279502884197169399375 · · · ,

e = 2.71828182845904523536028747135266249775724709369995957 · · · ,

and
√
2 = 1.4142135623730950488016887242096980785697 · · ·

have infinite decimal expansions that do not recur (they have no repeating blocks) and cannot
be written as fractions. To find such number on the number line, we use approximations.
In a similar manner, approximations can be applied to recurring decimals and overlong
terminating decimals.
There are many ways of approximating real number by decimals; these include sequence of
truncations and sequence of approximations.

Sequence of Truncations

Consider the infinite decimal expansion of a real number α. If we truncate this expansion
at 1 place, 2 places, 3 places, ..., the result is a sequence of rational numbers (terminating
decimals) converging to α. For example, the sequence of truncations to π is

3.1, 3.14, 3.141, 3.1415, 3.14159, 3.141592, 3.1415926, 3.14159265, · · ·

or
31 314 3141 31415 314159 3141592 31415926 314159265
, , , , , , , ,··· .
10 100 1000 10000 100000 1000000 10000000 100000000

Sequence of Approximations

To approximate the real number to a given number of decimal places, we truncate it one
place more and then round in the usual way. For example, the sequence of approximations
to π is
3.1, 3.14, 3.142, 3.1416, 3.14159, 3.141593, 3.1415927, 3.14159265, · · ·

or
31 314 3142 31416 314159 3141593 31415927 314159265
, , , , , , , ,··· .
10 100 1000 10000 100000 1000000 10000000 100000000
In either method, the infinite decimal expansion of an irrational number α gives us a sequence
of rational numbers that give better and better approximations to α. The sequence converges

6
to α in its limit, i.e. the terms of the sequence get closer and closer to α and we can get
arbitrarily close to α by going far enough down the sequence.

PRINCIPLE OF MATHEMATICAL INDUCTION

Suppose there is a mathematical statement involving the positive integer n and that:
(i ) the statement is true for n = 1;
(ii ) if the statement is true for n = k for a positive integer k, then the statement is true
for n = k + 1.
Then the statement is true for every positive integer n.

Steps in Applying the Principle of Mathematical Induction

Step 1 : Prove that the statement is true for n = 1. This is called the basis step.
Step 2 : Let k be a positive integer. Assume that the given statement is true for n = k.
Use this assumption to prove that the statement is true for n = k + 1. This is
called the inductive step.
The assumption that the given statement is true for n = k in the inductive step is called
the induction hypothesis.
Examples:
1. Use mathematical induction to prove that for every positive integer n the sum of the
first n positive integers is n(n+1)
2
.
Solution: We show that 1 + 2 + 3 + · · · + n = n(n+1)2
.
1(1+1)
For n = 1, 2 = 1 and hence the statement is true for n = 1.
Now suppose the statement is true for n = k where k is a positive integer, i.e.
k(k + 1)
1 + 2 + 3 + ··· + k = .
2
(k+1)[(k+1)+1]
For n = k + 1, we need to show that 1 + 2 + 3 + · · · + (k + 1) = 2
. In this
case,

1 + 2 + 3 + · · · + (k + 1) = (1 + 2 + 3 + · · · + k) + (k + 1)
k(k + 1)
= + (k + 1)
2
k(k + 1) + 2 (k + 1)
=
2
(k + 1) (k + 2)
=
2
(k + 1) [(k + 1) + 1]
=
2

7
 and so true for n = k + 1.
Since the statement is true for n = 1 and true for n = k + 1 whenever true for n = k,
then by the principle of mathematical induction, the statement is true for all positive
integers n.
2. Prove that for each positive integer n, 4 is a factor of 7n − 3n .
Solution: When n = 1, 71 − 31 = 4 = 4(1). So, the statement is true for n = 1.
Now, suppose true for n = k for a positive integer k, i.e. 7k − 3k = 4t for some integer
t. We show that 4 is a factor of 7k+1 − 3k+1 , i.e. the statement is true for n = k + 1.
In this case,

7k+1 − 3k+1 = 7k+1 − 7(3k ) + 7(3k ) − 3k+1

= 7(7k − 3k ) + 3k (7 − 3)
= 7(4t) + 3k (4)
= 4(7t + 3k )

where 7t + 3k is an integer. So, true for n = k + 1 whenever true for n = k.

Therefore, the statement is true for all positive integer n.
3. Show that 9n − 1 is even for every positive integers n.
Solution: For n = 1, 91 − 1 = 8 = 2(4). So, true for n = 1.
Suppose true for n = k for a positive integer k, i.e. 9k − 1 = 2p where p is an integer.
For n = k + 1, 9k+1 − 1 = 9k+1 − 9 + 9 + 1 = 9(9k − 1) + 8 = 9(2p) + 2(4) = 2 (9p + 4)
where 9p + 4 is an integer. So, true for n = k + 1 if true for n = k.
Therefore, the statement is true for all integers n ≥ 1.
4. Prove that 2n > n for every positive integer n.
Solution: When n = 1, 21 > 1, which is true.
Suppose the statement is true for n = k, i.e. 2k > k for some positive integer k.
Now, we need to show that it is true for n = k + 1, i.e. 2k+1 > k + 1. From the inductive
hypothesis, 2k > k ⇒ 2(2k ) > 2k ⇒ 2k+1 > 2k. Since k ≥ 1, then k + k ≥ k + 1
⇒ 2k ≥ k + 1. Hence, 2k+1 > 2k ≥ k + 1 ⇒ 2k+1 > k + 1. So, the statement is true
for n = k + 1 whenever true for n = k. Therefore, by the principle of mathematical
induction, the statement is true for all positive integer n.
n)
5. Prove by induction that if r 6= 1, then a + ar + ar2 + · · · + arn−1 = a(1−r 1−r
.
a(1−r)
Proof : When n = 1, 1−r = a, hence true for n = 1.
a(1−rk )
Suppose true for n = k for a positive integer k, i.e. a + ar + ar2 + · · · + ark−1 = 1−r .
We use this assumption to show that it is true for n = k + 1, i.e.

k+1


a 1 − r
a + ar + ar2 + · · · + ark = .
1−r

8
 Now,

a + ar + ar2 + · · · + ark = a + ar + ar2 + · · · + ark−1 + ark

a 1 − rk
= + ark
1−r

a 1 − rk + ark (1 − r)
=
1−r
a − ar + ark − ark+1
k
=
1−r
k+1
a − ar
=
1−r

a 1 − rk+1
= .
1−r

So, true for n = k + 1 if true for n = k. Therefore, the statement is true for all positive
integer n.
Exercise:
Use mathematical induction to prove that:
1. the sum of the first n even natural numbers is n (n + 1).
2. the sum of the first n positive odd numbers is n2 .
1
3. the sum of the squares of the first n positive integers is 6n (n + 1) (2n + 1).
2 2 2 2 1 2
4. 1 + 3 + 5 + · · · + (2n − 1) = 3n (4n − 1) for each positive integer n.
5. 8n − 1 is divisible by 7 for all positive integers n.
6. 2 is a factor of n2 + 5n for every positive integer n.
7. n3 − n is divisible by 3 for all integers n ≥ 1.
8. 22n − 1 is a multiple of 3 for all integers n > 0.
9. 3 divides 22n+1 + 1 for each natural number n.
n
i (i + 1) = n(n+1)(n+2)
P
10. 3
for every positive integer n .
i=1
1 1 1 1 n(n+3)
11. 1(2)(3) + 2(3)(4) + 3(4)(5) + · · · + n(n+1)(n+2) = 4(n+1)(n+2) for every integer n ≥ 1.
n
12. for a non-zero real number a > −1, then (1 + a) > 1 + na for every integer n ≥ 2.