Compounding interest problems are a specific type of exponential growth problems and are commonly taught in calculus classes. Using certain formulas, we can see how an initial sum of money increases exponentially when we continuously add, or compound, the interest it earns to the original principal amount, and then the interest earns interest over time.
Read MoreGrowth and decay problems are another common application of derivatives. We actually don’t need to use derivatives in order to solve these problems, but derivatives are used to build the basic growth and decay formulas, which is why we study these applications in this part of calculus.
Read MoreThe population of a species that grows exponentially over time can be modeled by P(t)=Pe^(kt), where P(t) is the population after time t, P is the original population when t=0, and k is the growth constant.
Read MoreIn order to model sales decline with the exponential decay equation, the decline must have a constantly and exponentially rate of decline. If it does, we can use our standard exponential change equation.
Read More
