How are exponential functions used to model growth, decay and compound processes in the real world?
Model practical problems with exponential functions of the form and interpret growth, decay and asymptotes
A focused answer to the HSC Maths Standard 2 dot point on exponential modelling. Growth and decay, the base b and rate, the horizontal asymptote, identifying an exponential from a constant ratio, sketching the curve stage by stage, and applications including compound interest, population growth, half-life and depreciation with worked examples.
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What this dot point is asking
NESA wants you to spot when an exponential model applies. It applies whenever the change over each period is a fixed percentage of the current size, such as bacterial growth, radioactive decay, compound interest, or depreciation (the steady loss in value of an asset over time). You then set up with the right base, evaluate it, and solve exponential equations using logarithms. The deeper idea is that exponential change is multiplicative: each step multiplies by the same number . That is exactly what separates it from linear change, where each step instead adds the same number.
The answer
The standard form
- is the initial value at (since ).
- is the base, the per-unit multiplier.
- : growth. : decay.
Reading a model is mostly reading these two numbers. The tells you where the curve starts on the vertical axis; the tells you, in one number, both the direction (up if , down if ) and the speed of the change.
From percentage rate to base
- Growth at per period: . So growth gives .
- Decay at per period: . So decay gives .
This is the same multiplier used in straight compound interest or declining-balance depreciation. The base is always close to for ordinary percentage rates, which is a quick sanity check: a base of or for a "" rate is almost certainly a slip.
The asymptote
The graph of (for ) gets closer and closer to the -axis but never touches it. The line is a horizontal asymptote, which means a line a curve keeps approaching but never reaches. So a decaying quantity heads towards zero without ever reaching exactly zero. That is why a model never predicts a population, balance or mass of precisely . For a growth curve the same line is the asymptote on the left: as becomes very negative the curve flattens towards zero, while to the right it climbs without limit.
Solving for the exponent
If and you know , and and want :
Either log base works, because the bases cancel in the ratio. Use whichever your calculator gives easily. This is the standard "how long until..." calculation. It tells you how long until the investment doubles, the population reaches a target, or the drug concentration drops to a safe level.
Reading off worded problems
- "Doubles every time units" implies per , so per unit of time the base is .
- "Half-life of " implies per , so per unit .
- "Grows at continuously" is technically , but Standard 2 uses discrete compounding, so use .
Spotting an exponential from a table: the constant ratio
When a table is supplied and you must name the model, the test for an exponential is the ratio of consecutive values.
Take the decay table . The ratios are : constant, so the model is exponential with , and the first value is . The full model is . Contrast a linear table, where you would instead subtract the same amount each step.
Sketch the exponential curve, stage by stage
Graph an exponential model the same way you graph any curve: tabulate, plot, then join with a smooth curve. The build below is a decay, an asset worth dollars after years (it halves annually), with table values at .
Stage 1, draw and scale the axes. Time runs along the horizontal axis (0 to 4 years) and the amount up the vertical axis (0 to 8000 dollars, the starting value). The starting value sets the top of the scale.
Stage 2, plot the table points. Plot , , , and . Each value is exactly half the one before it, the constant ratio that marks the data as exponential rather than linear.
Stage 3, join the points with a smooth curve. Join the dots with one smooth curve that falls steeply at first and then flattens. Decay curves keep dropping but the drop gets smaller and smaller; the curve never turns back up.
Stage 4, mark the intercept and the asymptote. The curve cuts the vertical axis at : that intercept is the value of , the starting amount, because . The dashed horizontal line is the asymptote: the curve falls towards it forever but never reaches it, so the asset's modelled value gets tiny but never hits exactly zero.
A growth curve is built the same way, but the points climb (multiply up each step) and the curve rises ever more steeply to the right, with the asymptote now sitting under the flat left-hand tail.
How exam questions ask about exponential models
The phrasing changes but each version maps to a familiar step:
- "Set up / write an equation for..." or "write a model for..." Identify (the starting value) and (use for growth, for decay), then write with the variable named.
- "Find the value / population / amount after periods." Substitute and evaluate, rounding sensibly for the context (whole dollars, whole organisms).
- "How long until it reaches / doubles / halves / falls below...?" Set to the target, divide by , and take logs to solve for .
- "What does the model predict in the long run / does it ever reach zero?" Point to the asymptote : a decaying quantity approaches but never reaches it.
- "Which model fits this table?" Check the ratio of consecutive values: a constant ratio means exponential.
- "By what percentage does it change each period?" Read it off the base: is growth, is decay.
- "Sketch the graph." Mark the -intercept , show the correct direction (rising for , falling for ), and draw the curve flattening towards the asymptote .
Exam-style practice questions
Practice questions written in the style of NESA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
2022 HSC-style4 marksThe population of bacteria in a culture is modelled by , where is time in hours. Find the population after hours and the time taken to reach .Show worked answer →
At : .
.
, round to bacteria.
For : , so .
Take logs of both sides: , so hours.
Markers reward the substitution at rounded sensibly, taking logs to solve the exponential equation, and the time to the nearest tenth of an hour.
2021 HSC-style3 marksA car valued at $45000 depreciates at per annum. Find its value after years using an exponential model.Show worked answer →
Depreciation at means the value is multiplied by each year.
Model: .
At : .
.
, i.e. $23747.94.
Markers reward the multiplier (not ), the correct exponent, and an answer rounded sensibly. Lose half a mark for using instead of .
Practice questions
Original practice questions graded from foundation to exam level, each with a full worked solution. Try them before revealing the solution.
foundation2 marksThe population of a town is modelled by , where is the number of years from now. Find the population the model predicts after years, to the nearest whole person.
Show worked solution →
Substitute . Put the value straight into the model:
Compute the growth factor. Raise the base to the power :
Multiply and round. A population is a whole number, so
Answer: the model predicts about people after years.
foundation2 marksA table of an exponential model is shown.
| | 0 | 1 | 2 | 3 |
| --- | --- | --- | --- | --- |
| | 6 | 18 | 54 | 162 |
(a) State the value of . (b) Find the base .
Show worked solution →
Part (a), read off . The initial value is the value of when , because . From the table at , so
Part (b), find from the constant ratio. For an exponential model each value is the previous one multiplied by , so divide consecutive values:
The ratio is a constant , which is the base.
Answer: and , so the model is .
foundation3 marksA colony starts with bacteria and grows at per hour. Let be the number of bacteria after hours. (a) Write an exponential model of the form . (b) Find the number of bacteria after hours, to the nearest whole bacterium.Show worked solution →
Part (a), set up the model. The starting value is . Growth at per hour gives the base , so
Part (b), evaluate at . Substitute and compute the growth factor:
Round for context. Bacteria are whole, so .
Check. The base is just above , as expected for a growth rate, and is larger than the starting , which is right for growth.
foundation3 marksA drone bought for $1200 depreciates at per annum. Let be its value in dollars after years. (a) State the base for the exponential model. (b) Write the model . (c) Find the drone's value after years, correct to the nearest cent.Show worked solution →
Part (a), find the base. Depreciation at per year multiplies the value by each year (not ).
Part (b), write the model. The initial value is , so
Part (c), evaluate at . Compute the decay factor, then multiply:
State the answer. After years the drone is worth $736.95.
Check. The base is just below , correct for decay, and $736.95 is less than the $1200 paid.
core3 marksAfter a coffee, the mass of caffeine in a person's body is mg and then decreases by each hour. Let be the mass of caffeine in mg after hours. (a) Write a model of the form . (b) Find the caffeine remaining after hours, correct to decimal place. (c) Find the caffeine remaining after hours, correct to decimal place.
Show worked solution →
Part (a), write the model. Decreasing by each hour multiplies the mass by (not ). With initial mass ,
Part (b), evaluate at . Raise the base to the power , then multiply:
Part (c), evaluate at . Same method with exponent :
Answer: about mg remains after hours and about mg after hours. The base is just below , correct for decay, and the later value is smaller, as expected.
core4 marks$8000 is invested at per annum compounded annually. (a) Write a model for the value in dollars after years. (b) Find the value after years, correct to the nearest cent. (c) By what percentage does the investment grow each year?Show worked solution →
Part (a), write the model. The multiplier for one year is , and the initial amount is , so
Part (b), evaluate at . Compute the growth factor to enough places to keep the cents accurate:
So after years the investment is worth $10418.08.
Part (c), read the percentage change. The base means a per-year multiplier of , i.e. growth of each year.
Check. $10418.08 is more than the $8000 invested, as expected for growth at a positive rate.
core4 marksA spreadsheet records the number of members of a new club at the end of each year:
| (years) | 0 | 1 | 2 | 3 |
| --- | --- | --- | --- | --- |
| | 5000 | 5500 | 6050 | 6655 |
(a) Show that an exponential model fits this data. (b) Write the model . (c) Use it to predict the membership after years.Show worked solution →
Part (a), test the ratio of consecutive values. For an exponential model the ratio of one value to the previous must be constant:
The ratio is a constant , so the data is exponential (a constant ratio, not a constant difference).
Part (b), write the model. The initial value is (the value at ) and the per-year multiplier is , so
Part (c), predict at . Compute the growth factor and multiply:
Membership is a whole number, so the model predicts about members after years.
Check. Each step multiplies by ( growth), and continues the rising pattern of the table.
core4 marksA radioactive isotope has a half-life of days. A sample starts with a mass of mg. (a) Write a model for the mass mg remaining after days. (b) Find the mass remaining after days. (c) Find the mass remaining after days, correct to decimal place.Show worked solution →
Part (a), write the model. A half-life means the base is and the exponent counts how many half-lives have passed, which is . With initial mass ,
Part (b), evaluate at . Here , exactly three half-lives:
Part (c), evaluate at . Now , so
Check. Halving from gives at days, so mg at days is correct, and mg at days sensibly lies between the mg at days and the mg at days.
exam4 marksThe population of a country town is modelled by , where is the number of years after . Use the model to find the year during which the population first reaches . Show how you use logarithms.Show worked solution →
Set up the equation. Put into the model:
Isolate the power. Divide both sides by :
Take logarithms of both sides. This is the method step:
Interpret for the year. Since years, the population passes during the st year after , that is during the year .
Check. At , , still under ; at , , just over, confirming the crossing is during year .
exam5 marksA factory machine is bought for $60000 and depreciates at per annum. (a) Write a model for the value in dollars after years. (b) Find the value after years, to the nearest dollar. (c) Find the first whole year at the end of which the value has fallen below $20000. Show your use of logarithms.Show worked solution →
Part (a), write the model. Depreciation at gives base , with :
Part (b), evaluate at . Compute the decay factor and multiply:
So after years the value is about $27127.
Part (c), solve for the value below $20000. Set and isolate the power:
Take logarithms of both sides:
Since must be a whole number of years, round up: the value first drops below $20000 at the end of the th year.
Check. At , (still above $20000); at , (below), confirming year .
exam5 marks$15000 is invested at per annum compounded annually, giving dollars after years. (a) Find the value after years, to the nearest cent. (b) Find the doubling time of the investment, correct to decimal place, using logarithms.Show worked solution →
Part (a), evaluate at . Compute the growth factor, then multiply:
So after years the investment is worth $23020.30.
Part (b), set up the doubling equation. Doubling means , so
Take logarithms. This is the method step:
So the investment doubles in about years. Notice the doubling time does not depend on the starting amount, only on the rate.
Check. At , , just under , and the value keeps rising, so doubling occurs just after years as found.
exam6 marksAn invasive water weed is first noticed covering m of a wetland, and the area it covers grows by each month. (a) Write a model for the area in m after months. (b) Find the area covered after months, to the nearest m. (c) Find the first whole month at the end of which the weed covers more than m. Show your use of logarithms.
Show worked solution →
Part (a), write the model. Growth of each month gives base , with initial area , so
Part (b), evaluate at . Raise the base to the power , then multiply:
Part (c), set up the equation. Put and isolate the power:
Take logarithms of both sides. This is the method step:
Since must be a whole number of months, round up: the weed first covers more than m at the end of the th month.
Answer: the area is about m after months, and it first passes m at the end of month .
Check. At , (still under ); at , (over), confirming month .
