Exponential and
Logarithmic Functions
College Algebra
Exponential Functions
Suppose you inherit $10,000. You decide to invest in in an account paying
3% interest compounded continuously. How can you calculate the balance
be in 5 years, 10 years, and 50 years? You’ll want to know, especially for
retirement planning.
Exponential Functions
A function that models exponential growth grows by a rate proportional
to the amount present. For any real number x and any positive real
numbers 𝑎 and 𝑏 such that 𝑏 ≠ 1, an exponential growth function has the
form
𝑓(𝑥) = 𝑎𝑏 *
where
• 𝑎 is the initial or starting value of the function
• 𝑏 is the growth factor or growth multiplier per unit 𝑥
Compound Interest Formula
Compound interest can be calculated using the formula
𝑟 12
𝐴 𝑡 = 𝑃(1 + )
𝑛
where
• 𝐴(𝑡) is the account value,
• 𝑡 is measured in years,
• 𝑃 is the starting amount of the account, often called the principal, or
more generally present value,
• 𝑟 is the annual percentage rate (APR) expressed as a decimal, and
• 𝑛 is the number of compounding periods in one year
The Number 𝑒
4 1
The letter 𝑒 represents the irrational number (1 + ) , as 𝑛 increases
1
without bound.
The number 𝑒 is used as a base for many real-world exponential models. To
work with base 𝑒, we use the approximation, 𝑒 ≈ 2.718282.
The constant was named by the Swiss mathematician Leonhard Euler
(1707–1783) who first investigated and discovered many of its properties.
Exponential Model
Given two data points, write an exponential model.
1. If one of the data points has the form (0, 𝑎), then 𝑎 is the initial value.
Using 𝑎, substitute the second point into the equation 𝑓(𝑥) = 𝑎(𝑏)* , and
solve for 𝑏.
2. If neither of the data points have the form (0, 𝑎), substitute both points
into two equations with the form 𝑓(𝑥) = 𝑎(𝑏)* . Solve the resulting
system of two equations in two unknowns to find 𝑎 and 𝑏.
3. Using the a and b found in the steps above, write the exponential
function in the form 𝑓(𝑥) = 𝑎(𝑏)* .
Write an Equation Given the Graph of an
Exponential Function
1. First, identify two points on the graph. Choose the 𝑦-intercept as one of
the two points whenever possible. Try to choose points that are as far
apart as possible to reduce round-off error.
2. If one of the data points is the 𝑦-intercept (0, 𝑎), then 𝑎 is the initial
value. Using 𝑎, substitute the second point into the equation 𝑓(𝑥) =
𝑎(𝑏)* , and solve for 𝑏.
3. If neither of the data points have the form (0, 𝑎), substitute both points
into two equations with the form 𝑓(𝑥) = 𝑎(𝑏)* . Solve the resulting
system of two equations in two unknowns to find 𝑎 and 𝑏.
4. Write the exponential function, 𝑓(𝑥) = 𝑎(𝑏)*
Writing an Exponential Function Given its Graph
Choose the 𝑦-intercept of the graph, (0,3), as the first point and thus initial
value, 𝑎 = 3. Next choose a point on the curve some distance away
from (0,3) that has integer coordinates. One such point is (2,12).
𝑦 = 𝑎𝑏 * Write form of an exponential equation
𝑦 = 3𝑏 * Substitute the initial value 3 for 𝑎
12 = 3𝑏 = Substitute in 12 for 𝑦 and 2 for 𝑥
4 = 𝑏= Divide by 3
𝑏 = ±2 Take the square root
Because we restrict ourselves to positive values of 𝑏, we will use 𝑏 = 2
Substitute 𝑎 and 𝑏 into the standard form to yield the equation 𝑓(𝑥) = 3(2)*
Continuous Growth/Decay Formula
For all real numbers 𝑡, and all positive numbers 𝑎 and 𝑟, continuous
growth or decay is represented by the formula
𝐴(𝑡) = 𝑎𝑒 @2
where
• 𝑎 is the initial value,
• 𝑟 is the continuous growth rate per unit time,
• and 𝑡 is the elapsed time.
If 𝑟 > 0, then the formula represents continuous growth
If 𝑟 < 0, then the formula represents continuous decay
Continuous Compounding Formula
For business applications, the continuous growth formula is called the
continuous compounding formula and takes the form
𝐴(𝑡) = 𝑃𝑒 @2
where
• 𝑃 is the principal or the initial invested,
• 𝑟 is the growth or interest rate per unit time,
• and 𝑡 is the period or term of the investment
Continuous Growth/Decay
Given the initial value, rate of growth or decay, and time 𝐭, solve a
continuous growth or decay function.
1. Use the information in the problem to determine 𝑎, the initial value of
the function.
2. Use the information in the problem to determine the growth rate 𝑟.
• If the problem refers to continuous growth, then 𝑟 > 0
• If the problem refers to continuous decay, then 𝑟 < 0
3. Use the information in the problem to determine the time 𝑡.
4. Substitute into the continuous growth formula and solve for 𝐴(𝑡).
Continuous Growth/Decay
Example: A person invested $1,000 in an account earning a nominal
10% per year compounded continuously. How much was in the account
at the end of one year?
Solution: This is a continuous compounding problem with growth
rate 𝑟 = 0.10. The initial investment was $1,000, so 𝑃 = 1000. We use
the continuous compounding formula to find the value after 𝑡 = 1 year:
𝐴(𝑡) = 𝑃𝑒 @2 Use the continuous compounding formula
= 1000𝑒 D.4 Substitute known values for 𝑃,𝑟, and 𝑡
≈ 1105.17 Use a calculator to approximate
The account is worth $1,105.17 after one year.
Graphs of Exponential Functions
An exponential function with the form 𝑓(𝑥) = 𝑏 * , 𝑏 > 0, 𝑏 ≠ 1, has these
characteristics:
• one-to-one function
• horizontal asymptote: 𝑦 = 0
• domain: −∞, ∞
• range: 0, ∞
• 𝑥-intercept: none
• 𝑦-intercept: 0,1
• increasing if 𝑏 > 1
• decreasing if 𝑏 < 1
Graphing Exponential Functions
Given an exponential function of the form 𝒇 𝒙 = 𝒃𝒙 , graph the
function.
1. Create a table of points.
2. Plot at least 3 points from the table, including the 𝑦-intercept (0,1).
3. Draw a smooth curve through the points.
4. State the domain, −∞, ∞ , the range, (0, ∞), and the horizontal
asymptote, 𝑦 = 0.
Graphing Exponential Functions
Example: Draw the graph of 𝑓 𝑥 = 0.25*
• Since 𝑏 = 0.25 is between 0 and 1,
we know the function is decreasing
• Create a table of points
𝑥 −2 −1 0 1 2
𝑓(𝑥) 16 4 1 0.25 0.0625
• Plot the 𝑦-intercept, (0,1) plus 2 other points
• Draw a smooth curve connecting the points
Graphing a Vertical Shift
Observe the results of shifting
𝑓 𝑥 = 2* vertically:
Graphing a Horizontal Shift
Observe the results of shifting
𝑓 𝑥 = 2* horizontally:
Horizontal and Vertical Translations
For any constants 𝑐 and 𝑑, the function 𝑓(𝑥) = 𝑏 *NO + 𝑑 shifts the parent
function 𝑓(𝑥) = 𝑏 *
• vertically 𝑑 units, in the same direction of the sign of 𝑑, and
• horizontally 𝑐 units, in the opposite direction of the sign of 𝑐
• The 𝑦-intercept becomes (0, 𝑏 O + 𝑑)
• The horizontal asymptote becomes 𝑦 = 𝑑
• The range becomes (𝑑, ∞)
• The domain, (−∞, ∞), remains unchanged
Desmos Interactive
Topic:
https://www.desmos.com/calculator/pajb6u9zzj
Graphing Translations of Exponential Functions
Given an exponential function with the form 𝐟 𝐱 = 𝒃𝒙N𝒄 + 𝒅, graph
the translation.
1. Draw the horizontal asymptote 𝑦 = 𝑑.
2. Identify the shift as (−𝑐, 𝑑). Shift the graph of 𝑓(𝑥) = 𝑏 * left 𝑐 units
if 𝑐 is positive, and right 𝑐 units if 𝑐 is negative.
3. Shift the graph of 𝑓(𝑥) = 𝑏 * up 𝑑 units if 𝑑 is positive, and down 𝑑 units
if 𝑑 is negative.
4. State the domain, (−∞, ∞), the range, (𝑑, ∞), and the horizontal
asymptote 𝑦 = 𝑑.
Vertical Stretch and Compression
While horizontal and vertical shifts involve adding constants to the input or
to the function itself, a stretch or compression occurs when we multiply the
parent function 𝑓(𝑥) = 𝑏 * by a constant |𝑎| > 0
Stretches and Compressions of Exponential
Functions
For any factor 𝑎 > 0, the function 𝑓(𝑥) = 𝑎(𝑏)*
• is stretched vertically by a factor of 𝑎 if |𝑎| > 1
• is compressed vertically by a factor of 𝑎 if |𝑎| < 1
• has a 𝑦-intercept of (0, 𝑎)
• has a horizontal asymptote at 𝑦 = 0, a range of (0, ∞), and a domain
of (−∞, ∞), which are unchanged from the parent function
Desmos Interactive
Topic: exponential growth and decay
https://www.desmos.com/calculator/3pqyjsunkg
Reflections of Exponential Functions
The function 𝑓(𝑥) = −𝑏 * The function 𝑓(𝑥) = 𝑏 U*
• reflects the parent function • reflects the parent function
𝑓(𝑥) = 𝑏 * about the 𝑥-axis 𝑓(𝑥) = 𝑏 * about the 𝑦-axis
• has a 𝑦-intercept of (0, −1) • has a 𝑦-intercept of (0,1), a
• has a range of (−∞, 0) horizontal asymptote at 𝑦 = 0,
a range of (0, ∞), and a domain
• has a horizontal asymptote of (−∞, ∞), which are
at 𝑦 = 0 and domain of (−∞, ∞), unchanged from the parent
which are unchanged from the function.
parent function.
Graphing Reflections
• When the parent function 𝑓 𝑥 =
𝑏 * is multiplied by −1, we get a
reflection about the 𝑥-axis.
𝑓 𝑥 = 2* , 𝑔 𝑥 = −2*
• When we multiply the input by −1,
we get a reflection about the 𝑦-
axis.
𝑓 𝑥 = 2* , ℎ 𝑥 = 2U*
Translations of Exponential Functions
A translation of an exponential function has the form 𝑓 𝑥 = 𝑎𝑏 *NO + d
where the parent function, 𝑦 = 𝑏 * , 𝑏 > 1, is
• shifted horizontally 𝑐 units to the left
• stretched vertically by a factor of |𝑎| if 𝑎 > 0
• compressed vertically by a factor of |𝑎| if 0 < 𝑎 < 1
• shifted vertically 𝑑 units
• reflected about the 𝑥-axis when 𝑎 < 0
Logarithmic Functions
A logarithm base 𝑏 of a positive number 𝑥 satisfies the following definition:
For 𝑥 > 0, 𝑏 > 0, 𝑏 ≠ 1, 𝑦 = log \ (𝑥) is equivalent to 𝑏 ] = 𝑥, where
• we read log \ 𝑥 as, “the logarithm with base 𝑏 of 𝑥” or the “log
base 𝑏 of 𝑥”
• the logarithm 𝑦 is the exponent to which 𝑏 must be raised to get 𝑥
For example,
log4D 1000 = 3 is equivalent to 10^ = 1000
4 4
log = = −4 is equivalent to 2U` =
4_ 4_
Natural Logarithms
A natural logarithm is a logarithm with base 𝑒. We write log a (𝑥) simply
as ln(𝑥). The natural logarithm of a positive number 𝑥 satisfies the following
definition:
For 𝑥 > 0, 𝑦 = ln(𝑥) is equivalent to 𝑒 ] = 𝑥.
Since the functions 𝑦 = 𝑒 * and 𝑦 = ln 𝑥 are inverse functions, ln(𝑒 * ) = 𝑥 for
all 𝑥 and 𝑒 cd * = 𝑥 for 𝑥 > 0.
Graphs of Natural Logarithms
We can see the following characteristics in the graph of 𝑓 𝑥 = log \ (𝑥):
• one-to-one function
• vertical asymptote: 𝑥 = 0
• domain: 0, ∞
• range: −∞, ∞
• x-intercept: 1,0 and key point 𝑏, 1
• y-intercept: none
• increasing if 𝑏 > 1
• decreasing if 0 < 𝑏 < 1
Desmos Interactive
Topic: investigate how changing the base of the function changes its graph
https://www.desmos.com/calculator/pajb6u9zzj
Translations of the Logarithmic Function
For the parent function 𝑦 = log \ (𝑥):
Shift
• Horizontally 𝑐 units to the left 𝑦 = log \ (𝑥 + 𝑐) + 𝑑
• Vertically 𝑑 units up
Stretch and compress
• Stretch if 𝑎 > 1 𝑦 = 𝑎log \ (𝑥)
• Compression if 𝑎 < 1
Reflect about the 𝑥-axis 𝑦 = − log \ (𝑥)
Reflect about the 𝑦-axis 𝑦 = log \ (−𝑥)
Quick Review
• What is the compound interest formula?
• How do you write an exponential model from two data points?
• How can you tell if an exponential function represents continuous growth or
decay?
• For the function 𝑓 𝑥 = 𝑎𝑏 *NO + d, what term indicates a horizontal shift?
• What is the inverse of an exponential function?
• What is the difference between a natural logarithm and a common logarithm?
• For the function 𝑦 = 𝑎 log \ 𝑥 + 𝑐 + 𝑑, what term indicates a stretch or
compression?
• What is an extraneous solution?
