Growth + Decay Models

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11 Terms

1
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growth + decay

f(t) = a(1+r)^t

2
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compound interest

A(t) = P(1 + r/n)^nt

3
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compound continuous interest

A(t) = Pe^rt

4
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half-life

A(t) = P(1/2)^1/h * t

5
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a

initial amount

6
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r

growth rate as a decimal

7
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t

time (compound interest: years, compound continuous interest + half-life: same unit as rate)

8
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P

initial value

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n

number of times interest is compounded per year

10
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h

length of half-life

11
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A(t)/f(t)

amount at time t