### 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.

• Consumer Suggestion

Interested in buying stocks or learning more about how they work? Visit CNN Money for the top ten things to know about stocks and other getting started tips.

• 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.

These comments are not screened before publication. Constructive debate about the information on this page is welcome, but personal attacks are not. Please do not post comments that are commercial in nature or that violate copyright. Comments that we regard as obscene, defamatory, or intended to incite violence will be removed. If you find a comment offensive, you may flag it.

```             ___      _  _    __   __   _    _
___     / _ \\   | \| ||  \ \\/ // | \  / ||
/   ||  | / \ ||  |  ' ||   \ ` //  |  \/  ||
| [] ||  | \_/ ||  | .  ||    | ||   | .  . ||
\__ ||   \___//   |_|\_||    |_||   |_|\/|_||
-|_||   `---`    `-` -`     `-`'   `-`  `-`
`-`
```