$A_0$ = the initial amount · $r$ = the multiplier per period · $t$ = number of periods
Decrease of $p\%$: $r = 1 - \dfrac{p}{100}$
| In words | Multiplier $r$ | Growth or decay? |
|---|---|---|
| Increases by $6\%$ | $1.06$ | Growth |
| Increases by $50\%$ | $1.5$ | Growth |
| Decreases by $15\%$ | $0.85$ | Decay |
| Loses $3\%$ a year | $0.97$ | Decay |
| Halves each period | $0.5$ | Decay |
| Triples each period | $3$ | Growth |
ยฃ$8000$ is invested at $3.5\%$ compound interest per year. Find its value after $7$ years.
A car worth ยฃ$18\,000$ loses $18\%$ of its value each year. Find its value after $4$ years.
- Divide both sides by $A_0$ to isolate the power.
- Take logarithms of both sides.
- Use the power law to bring $t$ down.
- Divide by $\log r$.
- Interpret: for "how many whole years?", round up for growth targets.
ยฃ$5000$ is invested at $4.5\%$ per year. After how many complete years does it first exceed ยฃ$8000$?
A radioactive substance decays at $7\%$ per day. Find its half-life.
A population grows from $4000$ to $9000$ in $6$ years. Find the annual percentage growth rate.
It is the excess temperature above the surroundings that decays exponentially.
A drink at $80$ ยฐC is left in a room at $20$ ยฐC. After $10$ minutes it is $56$ ยฐC. Find its temperature after $30$ minutes.
The model
$A = A_0 r^t$.
Growth
$r = 1 + \dfrac{p}{100} > 1$.
Decay
$r = 1 - \dfrac{p}{100} < 1$.
Finding $t$
$t = \dfrac{\log(A/A_0)}{\log r}$.
Whole periods
Round up for growth targets; check both integers.
Finding $r$
Take the $t$th root, do not divide.
Half-life
Solve $r^t = 0.5$; independent of $A_0$.
Doubling time
Solve $r^t = 2$; also independent of $A_0$.
Cooling
Model the excess above the surroundings.
Interpret
State units, and comment on the model's limits.
Write down the multiplier for (a) a $7\%$ increase, (b) a $22\%$ decrease.
โถ Show solution
(a) $1.07$
(b) $0.78$
ยฃ$3000$ is invested at $5\%$ per year. Find its value after $8$ years.
โถ Show solution
$3000 \times 1.05^8 = 3000 \times 1.477455$
$= ยฃ4432.37$ (to the nearest penny)
A machine worth ยฃ$25\,000$ depreciates at $12\%$ per year. Find its value after $5$ years.
โถ Show solution
$r = 0.88$
$25\,000 \times 0.88^5 = 25\,000 \times 0.527732 = ยฃ13\,193.30$
A population of $1200$ grows at $3\%$ per year. How long until it reaches $2000$?
โถ Show solution
$1.03^t = \dfrac{2000}{1200} = 1.66667$
$t = \dfrac{\log 1.66667}{\log 1.03} = \dfrac{0.221849}{0.012837} = 17.3$ years (3 s.f.)
A substance decays at $10\%$ per hour. Find its half-life.
โถ Show solution
$0.9^t = 0.5$
$t = \dfrac{\log 0.5}{\log 0.9} = \dfrac{-0.301030}{-0.045757} = 6.58$ hours (3 s.f.)
ยฃ$4000$ is invested at $6\%$ per year. After how many complete years does it first exceed ยฃ$6000$?
โถ Show solution
$1.06^t > 1.5$
$t > \dfrac{0.176091}{0.025306} = 6.959$
So $t = 7$ complete years.
Check: $4000 \times 1.06^6 = ยฃ5674$ (under) and $4000 \times 1.06^7 = ยฃ6015$ (over) โ
A town's population grew from $20\,000$ to $28\,000$ in $5$ years. Find the annual growth rate.
โถ Show solution
$r^5 = \dfrac{28\,000}{20\,000} = 1.4$
$r = 1.4^{1/5} = 1.06961$
The growth rate is $6.96\%$ per year (3 s.f.).
A quantity halves every $4$ days. Find its daily percentage decay rate.
โถ Show solution
$r^4 = 0.5$, so $r = 0.5^{1/4} = 0.840896$.
The daily multiplier is $0.8409$, so the quantity loses $1 - 0.8409 = 0.1591$, i.e. about $15.9\%$ per day.
Explain why a quantity decaying at $50\%$ per year does not disappear after two years.
โถ Show solution
Each year the quantity is multiplied by $0.5$, so it halves what remains rather than removing a fixed amount.
After one year $50\%$ is left; after two years $25\%$; after three, $12.5\%$.
Since $0.5^t$ is positive for every $t$, the quantity approaches zero but never reaches it. The percentage losses do not add to $100\%$ because each applies to a progressively smaller base.
A cup of coffee at $90$ ยฐC is left in a room at $22$ ยฐC. After $5$ minutes its temperature is $73$ ยฐC.
(a) Find the multiplier $r$ for the excess temperature, per minute. (b) Find the temperature after $20$ minutes. (c) Find when the coffee reaches $40$ ยฐC, to the nearest minute. (d) Explain why the model predicts the coffee never reaches room temperature, and whether this is a reasonable feature.
โถ Show solution
(a) Initial excess: $90 - 22 = 68$ ยฐC. Excess after $5$ min: $73 - 22 = 51$ ยฐC.
$68 r^5 = 51 \;\Rightarrow\; r^5 = \dfrac{51}{68} = 0.75$
$r = 0.75^{1/5} = 0.944088$, so $r = 0.9441$ (4 d.p.).
(b) Excess after $20$ min $= 68 \times r^{20} = 68 \times \left(r^5\right)^4 = 68 \times 0.75^4$
$= 68 \times 0.316406 = 21.52$ ยฐC
$T = 22 + 21.52 = \mathbf{43.5}$ ยฐC (3 s.f.)
(c) At $40$ ยฐC the excess is $40 - 22 = 18$ ยฐC:
$68 r^t = 18 \;\Rightarrow\; r^t = \dfrac{18}{68} = 0.264706$
$t = \dfrac{\log 0.264706}{\log 0.944088} = \dfrac{-0.577005}{-0.024988} = 23.1$ minutes
So about $\mathbf{23}$ minutes.
Check: $22 + 68(0.944088)^{23} = 22 + 18.1 = 40.1$ ยฐC โ
(d) The excess is $68 r^t$, and since $r > 0$ this is positive for every $t$, however large. So the model gives a temperature always slightly above $22$ ยฐC, approaching it asymptotically but never equalling it.
This is actually a reasonable feature of the model, and it matches the physics: heat flows because of a temperature difference, so as the difference shrinks the cooling slows, and the approach to room temperature genuinely does take longer and longer.
In practice the coffee becomes indistinguishable from room temperature once the excess falls below the accuracy of any thermometer โ here the excess falls below $0.5$ ยฐC after about $85$ minutes. The asymptote is a mathematical idealisation of a real and observable slowing, not a flaw.