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Cyberpunk Math Lab: The Non-Linear World FREE

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Exponential Growth & Decay

50 min Cyberpunk Math Lab: The Non-Linear World

Learning Objectives

  • Model exponential situations
  • Distinguish growth from decay
  • Calculate future values

Key Concepts

Exponential Growth

y = a(1 + r)ᵗ where r > 0

Exponential Decay

y = a(1 - r)ᵗ where 0 < r < 1

Theory

**General form:** y = a · bᵗ - a = initial amount - b = growth factor (b > 1 = growth, 0 < b < 1 = decay) - t = time **Growth:** y = a(1 + r)ᵗ (r = rate as decimal) **Decay:** y = a(1 - r)ᵗ **Half-life:** Time for quantity to halve. After n half-lives: y = a(½)ⁿ

Examples

$1000 at 5% annual growth for 3 years

Solution: 1000(1.05)³ = $1157.63