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GCSE Maths · EdexcelChapter 25 · Functions and advanced graphs
GCSE Maths · Functions and Advanced Graphs · Higher · Lesson 25.6

GCSE Maths: Exponential graphs, growth and decay (Higher)

Part of the GCSE Maths functions and advanced graphs chapter (Higher). Chapter overview · whole chapter on one page · Download worksheet (PDF) · Answers (PDF)

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25.6

Exponential graphs, growth and decay

Edexcel 1MA1: A12, R16
Grade 7-9

Imagine a rumour. On day 0 one person knows it. Each day every person who knows it tells one more person, so the number doubles: 1, 2, 4, 8, 16, … The number after x days is 2x. A function with the unknown x in the power is called an exponential function. The general form is y = kx, where k is a positive number called the base.

To draw the graph, make a table of values. For y = 2x: 20 = 1 (any number to the power 0 is 1), 21 = 2, 22 = 4, 23 = 8, and for negative powers 2−1 = 1/2, 2−2 = 1/4. Every graph of y = kx has the same key features:

xy-3-2-11234-112345678910(0, 1)growth: y = 2^x, y = 3^xxy-4-3-2-1123-112345678910(0, 1)decay: y = (1/2)^x, y = (1/3)^x
Growth (k > 1) on the left: blue is 2^x and orange is 3^x. Decay (0 < k < 1) on the right: blue is (1/2)^x and orange is (1/3)^x. All pass through (0, 1) and never touch the x-axis.

Growth and decay problems. Exponential functions model real situations where something changes by the same percentage in every period: compound interest, a growing population, a falling car value, a medicine leaving the body. You met the idea in Chapter 5. The method is:

  1. Find the multiplier for one period: for an increase of r% it is 1 + r/100; for a decrease it is 1 − r/100.
  2. The amount after n periods is starting amount × (multiplier)n.
  3. Use a calculator for the power. Keep all the digits until the final rounding.

To find when an amount reaches a target, build a table of values period by period (or use trial and improvement) until you pass the target. For a quantity that halves every T units of time (a half-life) the amount is start × (1/2)time ÷ T.

If a graph passes through (0, a), then y = a × kx: the a is the starting value. A second point gives k.

Key ideas

  • y = kx passes through (0, 1), is always positive, and has the x-axis as an asymptote. k > 1: growth. 0 < k < 1: decay.
  • k0 = 1 and k−n = 1/kn.
  • Multiplier: increase r% = 1 + r/100; decrease r% = 1 − r/100. After n periods: start × multipliern.
  • To find a time, use a table or trial and improvement.
  • Through (0, a): y = a × kx. Use a second point to find k.
Worked example 25.6.1
Complete the table of values for y = 2x for x from −2 to 4, and describe the shape of the graph.

Key words. In 2x the number 2 is the base and x is the power (or index). A function with x in the power is an exponential function.

Method. Substitute each value of x into y = 2x and work out the power.

  1. Remember what a power means. 2x means 2 multiplied by itself x times. A power of 0 gives 1. A negative power means 1 divided by the positive power.
  2. Work out each value. Take the powers one at a time.
    x = −2: 2−2 = 1 ÷ 22 = 1 ÷ 4 = 0.25
    x = −1: 2−1 = 1 ÷ 21 = 1 ÷ 2 = 0.5
    x = 0: 20 = 1 (any number to the power 0 is 1)
    x = 1: 21 = 2
    x = 2: 22 = 2 × 2 = 4
    x = 3: 23 = 2 × 2 × 2 = 8
    x = 4: 24 = 2 × 2 × 2 × 2 = 16
  3. Write the values in the table.
    x−2−101234
    2x0.250.5124816

Check. Each value in the table is 2 times the one before it (reading left to right). ✓

Watch out. A negative power does not make the answer negative: 2−3 is 1/8, not −8.

Worked example 25.6.2
£3000 is invested at 4% per year compound interest. How much is it worth after 5 years?

Key words. The multiplier is the number you multiply by to apply a percentage change in one step. Compound means each change is applied to the new amount, not the original.

Method. Growth and decay problems use a multiplier. Find the multiplier, raise it to the power of the number of years, and multiply by the starting amount.

  1. Find the growth multiplier. An increase of 4% means we add 4% of the amount. So we are left with 100% + 4% = 104% of the amount, and as a decimal that is the multiplier.
    104% = 104 ÷ 100 = 1.04
  2. Write the formula. The amount is multiplied by 1.04 once for each year. After n years we multiply n times, which is the multiplier to the power n.
    V = (starting amount) × (multiplier)n
  3. Put in the numbers: start = £3000, multiplier = 1.04, n = 5. Replace each letter by its value.
    V = £3000 × 1.045
  4. Work it out on a calculator. Do the power 1.045 first, then multiply by 3000. Keep all the digits until the final rounding.
    1.045 = 1.21665
    V = £3000 × 1.21665 = 3649.96
  5. Round sensibly. Money is rounded to the nearest penny (2 decimal places).
    V = £3649.96

Check. Check the direction: the amount increases, so the answer should be bigger than £3000. It is £3649.96. ✓

Watch out. Do not work out the percentage once and multiply by the number of years. That gives simple growth. Compound growth multiplies by the multiplier every period, so use a power.

Worked example 25.6.3
A car is worth £14 000 when new. Its value falls by 15% each year. Work out its value after 3 years.

Key words. The multiplier is the number you multiply by to apply a percentage change in one step. Compound means each change is applied to the new amount, not the original.

Method. Growth and decay problems use a multiplier. Find the multiplier, raise it to the power of the number of years, and multiply by the starting amount.

  1. Find the decay multiplier. A decrease of 15% means we take away 15% of the amount. So we are left with 100% − 15% = 85% of the amount, and as a decimal that is the multiplier.
    85% = 85 ÷ 100 = 0.85
  2. Write the formula. The amount is multiplied by 0.85 once for each year. After n years we multiply n times, which is the multiplier to the power n.
    V = (starting amount) × (multiplier)n
  3. Put in the numbers: start = £14000, multiplier = 0.85, n = 3. Replace each letter by its value.
    V = £14000 × 0.853
  4. Work it out on a calculator. Do the power 0.853 first, then multiply by 14000. Keep all the digits until the final rounding.
    0.853 = 0.614125
    V = £14000 × 0.614125 = 8597.75
  5. Round sensibly. Money is rounded to the nearest penny (2 decimal places).
    V = £8597.75

Check. Check the direction: the amount decreases, so the answer should be smaller than £14000. It is £8597.75. ✓

Watch out. Do not work out the percentage once and multiply by the number of years. That gives simple growth. Compound growth multiplies by the multiplier every period, so use a power.

Worked example 25.6.4
£800 is invested at 3% compound interest per year. After how many whole years will it first be worth at least £1000?

Method. Use the multiplier repeatedly, building a table, until the amount reaches the target.

  1. Find the multiplier. Each year the amount is multiplied by the same number.
    103% = 1.03
  2. Work out the amount at the end of each year. Multiply by 1.03 each time. Stop as soon as the amount reaches or passes £1000.
    After n yearsAmount
    0£800.00
    1£824.00
    2£848.72
    3£874.18
    4£900.41
    5£927.42
    6£955.24
    7£983.90
    8£1013.42
  3. Read off the answer. The first row that reaches or passes £1000 is after 8 years.
    n = 8

Check. Use the formula: £800 × 1.038 = £1013.42 (above £1000) but after 7 years it is £983.90 (not yet there). ✓

Watch out. Count the years carefully. The row marked 0 is the start, before any year has passed.

Worked example 25.6.5
The graph of y = a × kx passes through (0, 3) and (4, 48). Find a and k.

Method. Use the point on the y-axis to find a, then use the second point to find k.

  1. Write the general form. An exponential graph through the given points has the form y = a × kx, where a is the starting value and k is the multiplier.
    y = a × kx
  2. Use the point with x = 0 to find a. Any number to the power 0 is 1, so when x = 0 we get y = a × 1 = a.
    (0, 3) ⇒ a = 3
  3. Use the point (4, 48) to find k. Substitute x and y and then divide by a.
    48 = 3 × k4
    k4 = 48 ÷ 3 = 16
  4. Find the number that gives this value when raised to the power. Ask: which number multiplied by itself 4 times gives 16?
    24 = 2 × 2 × 2 × 2 = 16, so k = 2
  5. Write the equation.
    y = 3 × 2x

Check. Test the second point: x = 4 gives 3 × 24 = 3 × 16 = 48. ✓

Watch out. Divide by a before looking for the power. Do not square-root or cube-root until you have kn alone.

Watch out

A 20% increase followed by a 20% decrease does not return you to the start. Do not add the percentage on every year: multiply by the multiplier every year. And remember a negative power does not make a negative answer: 2−3 = 1/8.

Exercise 25F  Exponential graphs, growth and decay

Calculator allowed
1
FComplete a table of values for each function and describe what happens to y as x increases.
(a)y = 2x, for x = -2, 0, 2, 4
(b)y = 3x, for x = -2, -1, 0, 1, 2
(c)y = 10x, for x = -2, -1, 0, 1, 2
(d)y = 0.5x, for x = -3, -1, 0, 2, 4
2
FThe graph of y = 2x is shown.
xy-3-2-112345-1123456789101112(0, 1)(2, 4)(3, 8)
(a)Use the graph to estimate the value of 22.5.
(b)Use the graph to estimate the value of x when 2x = 10.
3
FThe diagram shows the graphs of y = 2x, y = 3x and y = (1/2)x. Match each equation to a graph A, B or C.
xy-3-2-1123-112345678910ABC
(a)y = 2x
(b)y = 3x
(c)y = (1/2)x
4
FIs each function an example of exponential growth or exponential decay?
(a)y = 1.05x
(b)y = 0.9x
(c)y = 7x
(d)y = 0.75x
(e)y = 0.99x
5
PSSolve each equation by trying whole-number powers.
(a)2x = 32
(b)3x = 81
(c)5x = 0.04
(d)0.5x = 64
6
PS£3000 is invested at 4% compound interest per year. How much is it worth after 6 years? Give your answer to the nearest penny.
7
PSThe population of a town is 24 000 and grows by 2.5% each year. Estimate the population after 8 years. Give your answer to the nearest hundred.
8
PSA motorbike costs £9500 new and loses 12% of its value each year. Work out its value after 4 years to the nearest £10.
9
PSA sample of a radioactive substance has a mass of 500 g. Its mass falls by 6% each day. Work out the mass after 10 days. Give your answer to 3 significant figures.
10
PS£800 is invested at 3% compound interest per year. How many whole years will it take to reach at least £1000?
11
PSA patient takes 200 mg of a drug. Each hour, 20% of the drug in the body is removed. After how many hours is there first less than 50 mg left in the body?
12
PSThe mass of a sample is M = 80 × (1/2)t/5 grams after t days, so the mass halves every 5 days. Work out the mass after
(a)5 days
(b)15 days
(c)25 days
13
PSEach graph has the form y = a × kx and passes through the two points given. Find a and k.
(a)(0, 3) and (4, 48)
(b)(0, 5) and (3, 135)
(c)(0, 2) and (2, 50)
14
PS£1000 is invested at a fixed annual compound interest rate. After 3 years it is worth £1331. Find the annual percentage rate.
15
RJo is offered two savings plans for £100. Plan A adds £10 at the end of each year. Plan B adds 10% of the current balance at the end of each year. Which plan is worth more after 20 years, and by how much? Explain why the difference grows.
16
RFor the graph of y = 2x, work out the average rate of change (gradient of the chord) from x = 0 to x = 1 and from x = 3 to x = 4. What does this tell you about the graph?
17
RMia says: “If I keep going far enough left, the graph of y = 2x will eventually touch the x-axis.” Is she right? Use values of 2x to explain.
18
RA graph with equation y = a × bx (where b > 0) passes through (1, 6) and (3, 24). Find the values of a and b.

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