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Below are two situations that can be described using exponential functions. They represent a small sampling of the situations where quantities grow or decay by a constant percentage over equal periods of time. For each situation:

  • Find an appropriate unit of time (such as days, weeks, years).

  • Find the multiplier that should be used.

  • Identify the initial value.

  • Write an exponential equation in the form that represents the growth or decay.

  1. A house purchased for has an annual appreciation of .


  2. The number of bacteria present in a colony is at noon, and it increases at a rate of per hour.

    This problem is similar to part (a) above.