Linear functions have a constant rate of change - that is a constant change in output for every change in input. Letβs consider functions which do not fit this model - those which grow more rapidly and change by a varying amount for every change in input.
You have two job offers on the horizon. One has offered to pay you per month while the other is offering the first month, the second month, the third month and doubles every month. Which job would you rather take?
Make a table representing how much money you will be paid each month for the first two years from the second job - paying the first month and doubling every month after.
This idea of a function that grows very rapidly by a factor, ratio, or percent each time, like the second job in Activity 5.1.2, is considered exponential growth.
Notice that in Activity 5.1.5 part (a) the ouput value is larger than the base, while in part (b) the output value is smaller than the base. This is similar to the difference between a positive and negative slope for linear functions.
In Activity 5.1.7, the only difference between the two exponential functions was the base. has a base of , while has a base of . Letβs use this fact to update Definition 5.1.4.
To begin creating equations for exponential functions using and , letβs compare a linear function and an exponential function. The tables show outputs for two different functions and that correspond to equally spaced input.
Similar to how arises naturally in geometry, there is an irrational number called that arises naturally when working with exponentials. We usually use the approximation . is also found on most scientific and graphing calculators.