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4.1 Exponential Growth

4.1 Exponential Growth
  • Math Help

    In the definition of exponential growth rate, note that A0 occurs before the occurrence of A1. Also, the list of numbers given in the study tip,

    A0, A1, A2, ..., An – 1, An

    are listed in the order of their occurrence. So, A0 occurs first, A1 occurs second, A2 occurs third, and so on. Another way to think of this list of numbers is that the numbers occur in chronological order; that is, as a sequence of events. That is why the list of numbers is referred to as a sequence.

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  • Checkpoint Solution

    Linear Growth: If the stock continues to increase by $0.20 per month, each share will be worth So, your investment will be worth You can use a spreadsheet to graph the linear growth.

    Exponential Growth: If the stock continues to grow at a rate of 4.6% in 4 years each share will be worth So, your investment will be worth about You can use a spreadsheet to graph the exponential growth.

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      _  __    ______              ______   __   _   
     | |/ //  /_   _//   ____     /_   _// | || | || 
     | ' //    -| ||-   |    \\    -| ||-  | '--' || 
     | . \\    _| ||_   | [] ||    _| ||_  | .--. || 
     |_|\_\\  /_____//  |  __//   /_____// |_|| |_|| 
     `-` --`  `-----`   |_|`-`    `-----`  `-`  `-`  
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    Ron Larson (author)1 decade ago |
    Linear growth is also called "growing arithmetically". Exponential growth is called "growing geometrically". You can read more about linear, exponential, and quadratic growth in Chapter 7.