Page 73 - Math Course 3 (Book 1)
P. 73

Exponential Growth and Decay





                MO. 2 - L6b                                                     Let’s Begin

                    Solve Problems Involving
                         Exponential Decay
                                                                  Exponential Decay
                            Vocabulary A-Z

                            Let us learn some vocabulary           Example


                                                                   CHARITY

                Exponential decay                                  During an economic recession, a charitable
                                                                   organization found that its donations dropped by
                                                           t
                The equation for exponential decay is y = C(1 - r)    1.1% per year. Before the recession, its donations
                where y is the final amount, C is the initial amount,   were $390,000. Write an equation to represent
                r is the rate of decay expressed as a decimal and t   the charity’s donations since the beginning of the
                is time. The initial amount decreases over time.   recession.
                                                                            t
                                                                   y = C(1 - r)              General equation for
                                  Swimming                                                   exponential decay
                 A fully inflated raft loses 6.6% of its air every day.
                                                                                       t
                The raft originally contains 4500 cubic inches of air.  y = 390,000(1 – 0.011)       C = 390,000 and r = 1.1%
                                                                                             or 0.011

                y = C (1 – r) t       General equation for         y = 390,000(0.989)   t       Simplify.
                                      exponential growth

                   = 4500(1 – 0.066) t  C =4500 and r = 6.6%
                                      or 0.066.                       Answer           y = 390,000(0.989) t


                  = 4500(0.934) t     Simplify.
                                                                   CHARITY
                    An equation to represents the loss of air is   During an economic recession, a charitable
                              t
                y = 4500(0.934) , where y represents the amount of   organization found that its donations dropped by
                 the air in the raft in cubic inches and t  represents   1.1% per year. Before the recession, its donations
                              the numbers of days.                 were $390,000. Estimate the amount of the
                                                                   donations 5 years after the start of the recession.
                 Key Concept                                       y = 390,000(0.989)    General equation for
                                                                                   t
                                                                                        exponential decay

                General Equation for                               y = 390,000(0.989)5    t = 5
                Exponential Decay
                The general equation for exponential  decay is     y = 369,016.74
                y = C(1 – r)t where y represents the final amount,
                C represents the initial amount, r represents the                The amount of donations should
                rate of decay expressed as a decimal, and  t          Answer           be about $369,017.
                represents time.














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