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Exponential functions look somewhat similar to functions you have seen before, in that they involve exponents, but there is a big difference, in that the variable is now the power, rather than the base. Previously, you have dealt with such functions as f(x) = x2, where the variable xwas the base and the number 2 was the power. In the case of exponentials, you will be dealing with functions such as g(x) = 2x, where the base is the fixed number, and the power is the variable.

Example:-

Q: A bank account balance, b, for an account starting with s dollars, earning an annual interest rate, r, and left untouched for nyears can be calculated as (an exponential growth formula). Find a bank account balance to the nearest dollar, if the account starts with $100, has an annual rate of 4%, and the money left in the account for 12 years.

A: b= s(1+r) x

b= 100(1+0.04)12

b= $160

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