Evaluating Exponential Growth/Decay Equations

Below, you will be given a word problem situation representing exponential growth. Think of the equation that represents this growth and then evaluate using the given time frame.

Use the following equations, where

• \(A=\) the new amount
• \(P=\) the original amount
• \(r=\) the rate of growth as a decimal (not a percent)
• \(t=\) time of growth
• \(n=\) the number of times the growth is compounded over one period
• \(e=\) Euler's constant

EXPONENTIAL GROWTH FORMULAS

• General Growth: \(A(t)=P(1 + r)^t\)
• Compound Growth: \(A(t)=P(1 + \frac{r}{n})^{nt}\)
• Continuous Growth: \(A(t)=Pe^{rt}\)

\(A(t)=\)