Name:__________________

Date:_______ Period:____

Guided Notes:
Introduction to Exponential Functions
Lesson Objectives
 Students will become familiar with understand the characteristics of an exponential
function.
 Students will recognize the differences and similarities exponential functions share
with linear and quadratic functions.
 Students will be able to apply and utilize the compound interest and continuous
compound interest formulas.
CA Content Standards
 F-LE 1. Distinguish between situations that can be modeled with linear functions and
with exponential functions.
 F-LE 1c. Recognize situations in which a quantity grows or decays by a constant
percent rate per unit interval relative to another.
Classroom Survey
How do you think these real-life situations relate to exponential functions?

Khan Academy Video: Introduction to Exponential

Functions
Jot down 5 facts you learned from this video.
1.
2.
3.
4.
5.
Let’s Break it Down
What is an exponential function?
 A function whose value is a _______(a) raised to a ________(x).
 Exponential functions are represented by the general format ____________
 a must be a value __________ than 0.
 Demonstrate fast _______ or ______.
 Fill in the values that provide us with the coordinates for the function above:
x y
-1
0
1
2
Real World Examples of Exponential functions
Increase Exponentially Decrease Exponentially
 Bacteria  _______________ dating
 Human ____________  The ________ after a bell is rung.
 Pandemics  _______ of ________ in a kettle
 Forrest ________ after turning off the heat.

Now You Try It!

Jot down 2 examples of exponential growth and 2 examples of exponential decay.
Turn to your partner and discuss the ideas you came up with.
Exponential growth:
1.
2.

Exponential decay:
1.
2.

Example 1
Classify whether this is an example of exponential growth or exponential decay and explain
why.

1. The population during the "Baby Boom" in 1946-1964.

 Example 2
Classify whether this is an example of exponential growth or exponential decay and explain
why.
2. The value of a brand new car that was just purchased once you drive it off the lot.

Compound Interest Formula

r
A=P(1+ n )nt
 A = Amount
 P = ______ investment/principal amount
 r = interest ______ percentage represented as a ________.
 n = _______ of times interest is compounded per ________.
 t = time in ______.

Continuously Compounded Interest Formula

A=Pert
 A = Amount
 P = ________ investment/principal amount
 e = ________ number which is equivalent to about _______.
 r = interest _______ percentage represented as a _________.
 t = time in ______.

Compound Interest vs Continuously Compounded

Interest Formula
Formula Differences Similarities How do I Example
 know when
to use
which?
Compound r -Interest is -Has initial -Look for key Jen opens up a
A=P(1+
Interest n compounded amount. phrases such savings account
)nt a certain -Includes as: with her bank.
amount of interest compounded The account
times a year rate. ___ times a guidelines state
(n). -Deals with year, that there is an
-Below I have time in quarterly, annual interest
highlighted years. semi- rate of 2.4%
the major annually. compounded 3
differences. times a year. If
r Jen deposits
A=P(1+ )nt
n $1,000 into the
account, what
will her balance
be after 7 years?
Continuously A=Pert -Interest is -Has initial Look for the Kevin wants his
Compounde constantly amount. key words: investment of
d Interest being -Includes continuous, $500 to become
compounded. interest constant $1,000. How
-Below I have rate. long will it take
highlighted -Deals with Kevin to reach
the major time in his goal if it is
differences. years. invested at 8%
A=Pert compounded
continuously?
Now You Try It!
Recall the elements of both formulas. Break down the information from the given
problems to classify each element. Then, calculate the total value.

1.) Jen opens up a savings account with her bank. The account guidelines state that there is
an annual interest rate of 2.4% compounded 3 times a year. If Jen deposits $1,000 into the
account, what will her balance be after 7 years?
A=
P=
r=
n=
t=

2.) Kevin wants his investment of $500 to become $1,000. How long will it take Kevin to reach
his goal if it is invested at 8% compounded continuously?
A=
P=
e=
r=
t=

Summary of Key Points

In this lesson we learned:
 Real-world examples of exponential functions.
 The characteristics of an exponential function.
 The general shape of the graph of an exponential function.
 How to differentiate between exponential growth and decay.
 Compound Interest formula and how to apply it.
 Continuously Compounded Interest formula and how to apply it.
Culminating Activity
With a partner of your choice, create your own compound interest problems!
Requirements:
 1 problem that uses the compound interest formula
 1 problem that uses the continuously compounded formula
 Identify all parts of the formula found in the problem
 Solve your problems.
r nt rt
A=P(1+ ) n A=Pe
Compound interest formula problem:

A=
P=
r=
n=
t=

Continuously compounded interest formula problem:

A=
P=
e=
r=
t=