Answer to Question #261078 in Real Analysis for Maka

Question

create your own real life situation where exponential function is applied

Answer 1

Solution

John invested $5000 in a bank that pays an annual interest rate of 10% compounded continuously. What is the amount he can get after t years from the bank?

We can represent it as: $A=Pe^{rt}$

where $A=$ amount received after t years,

$P=\$ 5000 \\r=10\%=0.1$

So, $A=5000e^{0.1t}$

which is clearly an exponential function in real-life.

The graph of the function $A=5000e^{0.1t}$