Bellwork Exponential Growth Example 1 Modeling Exponential Growth

Bellwork

• Exponential Growth

• Example 1: Modeling Exponential Growth • Since 1985, the daily cost of patient care in hospitals in the U. S. has increased about 8. 1% per year. In 1985, such hospital costs were an average of $460 per day. What is the approximate cost in 2011? • Growth factor = 100% + their percentage, turned to a decimal. So 100% + _______ = _____, _____ b • Year they need – Starting year. So ________________ That’s your x • a= • b= • x = • Plug in and solve

Example 2: Compound Interest Suppose your parents deposited $1500 in a bank account paying 6. 5% interest compounded annually when you were born. Find the account balance after 18 years. • Growth factor: 100% +, changed to a decimal. ______________ That’s your b How many interest periods are there? = ________ a= b= x= That’s your x

Homework • Page 441 6 -10 (change into a decimal!) 11 -15 (look at your table, change to quarterly and monthly) 16 -17, story problems

Example 3: Compound Interest Suppose your parents deposited $1500 into a bank account paying 6. 5% interest compounded quarterly. Find the account balance after 18 years Growth factor: 100% + , changed to a decimal. ______________ That’s your b How many interest periods are there (**remember: Quarterly)? = ________ That’s your x a= b= x=