1

Exponential Functions (section 3.1)

Definition of exponential functions.
Graph exponential functions.
Rules of exponential functions.
Compound Interest and other
applications.

2
Exponential Functions (pg 176)
Exponential function f with base a:
f(x) = a
x

where a>0, a=1, and x is any real number.




3
Evaluating (pg 176)
If f (x) = 3
x
find f (2) and f (- 2)
f (2) = 3
2
= 9 and
f (-2) = 3
-2
=
1
/
9






See the graph and table of values on the next page



4
Exponential Graph y=a
x
f (x) = 2
x
,

g(x) = 3
x
,

h (x) = 10
x










Domain: (-,) Range: (0,)


5
Some Observations (Rules)
For a positive and x and y real numbers
1) If a >1, then a
x
>1 for all x>0.
2) If a >1, and x<y, then a
x
<

a
y

Strictly increasing
3) If 0<a<1 and x<y then a
x
>

a
y
Strictly decreasing
4) For all x, a
x
>

0

Asymptote: lower bound
5) If a=1,then a
x
=

a
y
if and only if x=y
One-to-One. Useful in solving

6
Graph y=a
-x
=(1/a)
x
f (x) = 2
-
x
,

g(x) = 3
-
x
,

h (x) = 10
-
x










Domain: (-,) Range: (0,)




7
Transformations

f (x) = a
x-h
+k
f(x)= 2
x
D: (-, ), R: (0, )

g(x) = 2
x+1

D: (-, ), R: (0, )
h(x) = 2
x
2 D: (-, ), R: (-2, )





Sketch: Draw the asymptote first

8
Transformations

f (x) = a
x-h
+k
f(x)= 2
x

D: (-, ), R: (0, )

g(x) = -2
x

D: (-, ), R: (-, 0)




9
The Natural Exponential
Function e (pg 179)
e is an irrational number that
occurs frequently in science,
engineering, business and other
areas.
281828 2.71 45 8 9... e ~
The exponential function, f (x) = e
x
,
with e as its base is called the natural
exponential function.

10
Definition of e

We define e as the
1
lim 1
x
x
x

| |
+
|
\ .
x 100 1,000 10,000 100,000

2.7048

2.7169

2.7181

2.7183
1
1
x
x
| |
+
|
\ .

11
Graph of e
x
The function f(x)= e
x
is
strictly increasing
continuous
one-to-one
D: (-, ), R: (0, )

12
Graph of e
-x
This graph is obtained by reflecting
y=e
x
on the y- axis.

13
Application - Finance
Compound interest formula:



P: Principal (initial investment)
r: interest rate (decimal, per year)
n: compoundings per year
t: years
1
nt
r
A P
n
| |
= +
|
\ .
Continued on the next slide

14
Application continued
If $3000 is invested at an annual rate
of 6%, how much will we have in 10
years if it is compounded:
Annually
Quarterly
Monthly
Continuously
1
nt
r
A P
n
| |
= +
|
\ .
Continued on the next slide

15
Application continued

Annually:

Quarterly:

Monthly:


Continuously:
( )( )
1 10
.06
3000 1 $5372.54
1
A
| |
= + =
|
\ .
( )( )
4 10
.06
3000 1 $5442.06
4
A
| |
= + =
|
\ .
( )( )
12 10
.06
3000 1 $5458.19
12
A
| |
= + =
|
\ .
( )( )
10
.06
3000 1 ?? A

| |
= + =
|

\ .

16
Application
Continuous Compounding
rt
A Pe =
kt
y ne =
( )( )
.06 10
3000 $5466.36 A e = =
k: growth or decay constant

Application Science
1986 Chernobyl nuclear accident:
Plutonium has k = -0.00002845

Assume 10 pounds initially, how many
pounds of plutonium are left:
Today (2012)

In 100,000 years
17
( )
0.00002845 26
10 9.99 P e

= =
( )
0.00002845 100,000
10 0.58 P e

= =
( )
0.00002845
0
t
P Pe

=

Application Science
1986 Chernobyl nuclear accident:
Can also be modeled using half-life
using the compounding formula
Plutonium half-life = 24360 years

For 10 pounds initially
Today (2012)

In 100,000 years
18
( )
/24360
0
1 .5
t
P P =
( )
26/24360
10 .5 9.99 P = =
( )
100000/24360
10 .5 0.58 P = =

Testables
First Quiz
Graphing, Transformations

Later quiz and test
Graphing and transformations
Calculations using the formulas
19