Applications of Exponential Functions

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Natural Base e e = 2.71828... Used in a number of mathematical formulas f(x) = ex is the natural exponential function Applications of Exponential Functions

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In college, we study large volumes of information - information that, unfortunately, we do not often retain for very long. The function f(x) = 80e -0.5x + 20 describes the percentage of information, f(x), that a particular person remembers x weeks after learning the information 1. Find the percentage of information remembered at the moment it is first learned. F(0) = 80e-0.5(0) + 20 f(0) = 100

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f(x) = 80e-0.5x + 20 2. Find the percentage of information that is remembered after 1 week. 3. Find the percentage of information that is remembered after 4 weeks. 4. Find the percentage of information that is remembered after one year. F(1) = 80e-0.5(1) + 20 = 69 F(4) = 80e-0.5(4) + 20 = 31 F(52) = 80e-0.5(52) + 20 = 20

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Compound Interest Formula Continuously Compounding A = ending amount P = beginning amount R = rate N = number of times interest Is applied per year T = time

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1. Find the value of an investment of $10,000 for 5 years at an interest rate of 5.5% if the money is a. compounded semiannually b. compounded monthly c. compounded continuously