Complete the questions to practice writing exponential equations for a given scenario.

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If you have any difficulty with these solutions, please contact your teacher before continuing.

    1. Write an exponential equation in the form y = abx to represent each of the following scenarios.

    The method demonstrated in Example 5 can also be used to construct exponential functions that model financial problems. Before you consider this type of question, you must review key terms related to financial applications.
    • Read the following carefully, and talk to your teacher if you have any questions.

    The following table shows how the interest rate per compounding period is determined.

    Compounding Period Number of Times Interest Is Paid Interest Rate per Compounding Period, i
    daily
    365 times per year
    weekly
    52 times per year
    semi-monthly
    24 times per year
    monthly
    12 times per year
    quarterly
    4 times per year
    semi-annually
    2 times per year
    annually
    1 time per year

    Compound interest is one of the most common applications of exponential functions. Now that you have reviewed the basic terms related to financial applications, consider a compound interest problem.