Chapter 4
Exponential and
Logarithmic
Functions
4.1 Notes
Exponential Functions
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Objectives:
• Evaluate exponential functions.
• Graph exponential functions.
• Evaluate functions with base e.
• Use compound interest formulas.
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Definition of the Exponential Function
The exponential function f with base b is defined by
f ( x) = b x or y = b x
where b is a positive constant other than 1 (b > 0 and
b 1) and x is any real number.
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Example: Evaluating an Exponential Function
The exponential function f ( x) = 42.2(1.56) x models the
average amount spent, f(x), in dollars, at a shopping
mall after x hours. What is the average amount spent, to
the nearest dollar, after three hours at a shopping mall?
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Example: Graphing an Exponential Function
Graph: f ( x) = 3 x
x f ( x) = 3x
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Example: Transformations Involving Exponential
Functions
x −1
Use the graph of f ( x ) = 3 x
to obtain the graph of g ( x ) = 3
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Characteristics of Exponential Functions of the Form
f ( x) = b x
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The Natural Base e
n
The number e is defined as the value that 1 + 1
n
approaches as n gets larger and larger. As n →
the approximate value of e to nine decimal places is
e 2.718281827
The irrational number, e, approximately 2.72, is called
the natural base. The function f ( x) = e x is called the
natural exponential function.
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Example: Evaluating Functions with Base e
The exponential function f ( x) = 1066e0.042 x models the
gray wolf population of the Western Great Lakes, f(x), x
years after 1978. Project the gray wolf’s population in
the recovery area in 2012.
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Formulas for Compound Interest
After t years, the balance, A, in an account with
principal P and annual interest rate r (in decimal form)
is given by the following formulas:
1. For n compounding periods per year:
nt
r
A = P 1 +
n
2. For continuous compounding:
A = Pert
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Example: Using Compound Interest Formulas
A sum of $10,000 is invested at an annual rate of 8%.
Find the balance in the account after 5 years subject to
quarterly compounding.
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Example: Using Compound Interest Formulas
A sum of $10,000 is invested at an annual rate of 8%.
Find the balance in the account after 5 years subject to
continuous compounding.
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Checkpoint 1
You decide to invest $8000 for 6 years and you have a
choice between two accounts. The first pays 7% per
year, compounded monthly. The second pays 6.85%
per year, compounded continuously. Find the
accumulated amount for both.
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Checkpoint Answers
CP 1 A = 12,160.84
A = 12,066.60
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