Exponential Functions Advanced: Continuous Growth, e, and Half-Life
Algebra 1 introduced exponential growth. Algebra 2 deepens it: the natural base e, continuous compounding, and decay problems where the half-life is measured in years.
Discrete to continuous
Algebra 1 used P(1 + r)t for compound interest applied annually. Algebra 2 introduces Pert for continuous compounding — what happens when interest is added every instant. The natural base e ≈ 2.71828 is the unique number that makes calculus on exponential functions clean.
The natural base e
Continuous compounding
For the same rate and time, continuous compounding always yields slightly more than annual: er > (1 + r). The gap grows with the rate.
Continuous compounding formula
Which represents continuous compound interest of $P at rate r for t years?
Open the question →Half-life: decay problems
For radioactive isotopes (and many other decay processes), every fixed time period multiplies the remaining amount by ½.
Worked example
Half-life over 4 periods
A radioactive isotope has a half-life of 10 years. What fraction remains after 40 years?
Open the question →Solving exponential equations (without logs)
If you can rewrite both sides with the same base, just equate the exponents.
3-second recap
- e ≈ 2.71828 is the natural base. A = Pert for continuous compounding.
- Half-life: number of half-lives = elapsed time ÷ half-life period; multiply by (1/2)that many.
- Same base on both sides → equate exponents.
- Different bases → use logarithms (next lesson).