SHS

General
Mathematics
Quarter 1 – Module 23a:
Solving Problems Involving
Exponential Functions
General Mathematics – SHS
Quarter 1 – Week 7, Module 23a: Solving Problems Involving Exponential
Functions

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Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writer: Genaro N. de Mesa, Jr.

Editor: Desiree R. Euste
Reviewers: Sarah Christine P. Godoy
Simeon D. Brillantes
Illustrator: Genaro N. de Mesa, Jr.
Layout Artist: Jhomar B. Jaravata
Cover Art: Jed Adra

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SOLVING PROBLEMS INVOLVING EXPONENTIAL FUNCTIONS

Introduction

Many real-world phenomena can be modeled by exponential functions that

describe how things grow or decay as time passes. Some examples of such
phenomena are the studies of populations, bacteria, AIDS virus, radioactive
substances, loan interest rates and investments.
In this module, you will learn how to solve some problems in real-world
involving exponential functions.

Objectives

At the end of the self-directed module’s learning activities, you will be able to
solve problems involving exponential functions. (M11GM-Ig-2)

Vocabulary List

In exploring and answering this module, you will encounter the following
terms and concepts to help you use them appropriately in context:

• Exponential growth occurs when a quantity increases by the same factor

over equal intervals of time.

• Exponential decay occurs when a quantity decreases by the same factor

over equal intervals of time.

• Exponential growth functions are used in real-life situations involving

population growth and compound interest as one of the most prevalent
general applications of exponential functions.

• Exponential decay functions are used in real-life situations to model

populations that shrink (e.g. disease), or chemical compounds that break
down over time (radioactive decay).

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 Pre-Test

Directions: This test will evaluate your knowledge and skills prior to starting this
module. Read each question/item and encircle the letter that corresponds to your answer.
(Please use calculator if necessary)
Note: Using the Exponent Key in Calculator
On most calculators, you enter the base, press the exponent key and enter
the exponent.
Example: Enter 10, press the exponent key, then press 4 and enter. (10^4=).
The calculator should display the number 10,000, because that’s equal to 104.

1. In 1990, a small town had a population of 5,000 people which doubles every
10 years. What is the exponential model that will represent the given situation?
10 𝑡
A. 𝑦 = 5000(2) 𝑡 C. 𝑦 = 5000(2)10
1 10 1 𝑡
B. 𝑦 = 5000(2) 𝑡 D. 𝑦 = 5000(2)10

2. In item number 1, what was the population in year 1995? (Rounded to

whole number)

A. 7,070 people C. 7,072 people

B. 7,071 people D. 7,073 people
3. The half-life of a certain substance is 250 years. Initially, there were 100 g of
the substance. What is the exponential model representing this situation?
250 𝑡
A. 𝑦 = 100(2) 𝑡 C. 𝑦 = 100(2)250
𝑡
1 1 250
B. 𝑦 = 100( )250 D. 𝑦 = 100( ) 𝑡
2 2

4. In item number 3, how much substance will remain after 50 years? (Rounded
to whole number)

A. 88 g C. 86 g
B. 87 g D. 85 g
5. Maria puts P20,000 in a savings account paying 5% interest compounded
annually. How much money will be in her savings after 2 years?

A. P22,050 C. P22,500
B. P22,005 D. P22,050

- End of Pre-Test-
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 Learning Activities

In this part, you will learn how to solve problems involving exponential
functions in simplest way. The step-by-step discussion on solving real-life problems
involving exponential growth and decay functions was presented in this learning
activity.
Read…Explore…And understanD
*READ*
Directions: Read, explore and understand the concept on solving problems
involving exponential functions.

Exponential Growth Functions

A function of the form y = a(1+r)t, where a > 0 and r > 0, is an exponential

growth function. Exponential growth occurs when a quantity increases by the same
rate r in each period t. When this happens, the value of the quantity at any given time
can be calculated as a function of the rate and the original amount.

Example 1. The inaugural attendance of an annual music festival in a certain country is

120,000. The attendance y increases by 6% each year.

a. Write an exponential growth function that represents the attendance after t

years.
b. How many people will attend the festival in the fourth year? Round your
answer to the nearest thousand.

Solution
a. The initial amount is 120,000, and the rate of growth is 6%, or 0.06
y = a(1 + r)t Write the exponential growth function.
= 120,000(1 + 0.06)t Substitute 120,000 for a and 0.06 for r.
= 120,000(1.06)t Add.

The festival attendance can be represented by y = 120,000(1.06)t.

b. The value t = 3 represents the fourth year because t = 0 represents the first
year.

y = 120,000(1.06)t Write the exponential growth function.

= 120,000(1.06)3 Substitute 3 for t.
≈ 142,922 Use a calculator.

About 143,000 people will attend the music festival in the fourth year.

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 Exponential Decay Functions
A function of the form y = a(1 − r)t, where a > 0 and 0 < r < 1, is an
exponential decay function. An exponential decay occurs when a quantity decreases
by the same rate r in each period t. Similar with the exponential growth, the value of
the quantity at any given time can be calculated by using the rate and the original
amount.

Example 2. The yearly profits of a certain company in the Philippines is ₱1,250,000.

The profits have been decreasing by 5% per year.

a. Write an exponential decay function to represent this situation.

b. What will be the profits in 6 years? Round your answer to the nearest pesos.

Solution
a. The initial amount is 1,250,000, and the rate of decay is 5%, or 0.05
.
y = a(1 – r)t Write the exponential decay function.
= 1,250,000(1 – 0.05)t Substitute 1,250,000 for a and 0.05 for r.
= 1,250,000 (0.95)t Subtract.

The exponential decay function representing this situation is

y = 1,250,000(0.95)t

b. The value t = 6 represents the time in the given exponential decay situation.

y = 1,250,000(0.95)t Write the exponential decay function.

= 1,250,000(0.95)6 Substitute 6 for t.
≈ 918,865 Use a calculator.

About ₱918,865 will be the profit in 6 years.

Exponential Growth Functions involving Compound Interest

Exponential growth functions are used in real-life situations such as problems

involving compound interest. Although interest earned is expressed as an annual
rate, the interest is usually compounded more frequently than once per year. So, the
formula y = a(1 + r)t must be modified for compound interest problems.
Compound interest is the interest earned on the principal and on previously
earned interest. The balance y of an account earning compound interest is:

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Note:
Annual - once a year Monthly - 12 times a year
Semi-annually - twice a year Weekly - 52 times a year
Quarterly - 4 times a year Daily - 365 times a year

Example 3. Ms. Everything deposits ₱5000 in a savings account that earns 6%

annual interest compounded quarterly.

a. Write a function that represents the balance after t years.

b. How much money does Ms. Everything have at the end of 7 years? Round your
answer to the nearest pesos.

Solution

a. The principal (initial amount) is ₱5000 and the annual interest rate is 6% or
0.06 compounded quarterly (4 times a year).

𝑟
y = P(1 + 𝑛)𝑛𝑡 Write the compound interest formula.
0.06 4𝑡
y = 5000(1 + ) Substitute 5000 for P, 0.06 for r, and 4 for n.
4
4𝑡
y = 5000(1.015) Simplify.

The function that represents the balance after t years is y = 𝟓𝟎𝟎𝟎(𝟏. 𝟎𝟏𝟓)𝟒𝒕.

b. The value t = 7 represents the time (in years) in the given exponential growth
function involving compound interest.

y = 5000 (1.015)4𝑡 Write the exponential growth function.

= 5000 (1.015)4(7) Substitute 7 for t.
≈ 7,586 Use a calculator.

Ms. Everything has ₱7,586 in her savings account at the end of 7 years.

Let’s check your understanding!

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 Practice Task 1

Solve the following problems. Show your complete solutions.

1. The first year of a charity walk event in a certain city had an attendance
of 200 people. The attendance y increases by 5% each year.
a. Write an exponential growth function to represent this situation.

b. How many people will attend in the sixth year? Round your answer to
the nearest person.

2. The yearly profits of a certain small company is ₱500,000. The profits have
been decreasing by 4% per year.
a. Write an exponential decay function to represent this situation.

b. What will be the profits in 5 years? Round your answer to the nearest
pesos.

3. You deposits ₱10,000 in a savings account that earns 3% annual interest

compounded once a year.

a. Write a function that represents the balance after t years.

b. How much money do you have at the end of 6 years?

Round your answer to the nearest pesos.

4. A certain town with a population of 5,000 grows 2% per year. Find the
population at the end of 10 years. Round your answer to nearest whole
number.

5. The half-life of a certain substance is 100 years. Initially, there were 50 g of

the substance. How much substance will remain after 25 years? Round your
answer to nearest whole number.

(Hint: Use t = 25)

Consider the exponential model below representing the situation above to

answer the problem:
𝑡
1 100
y= 50 (2)

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 Practice Task 2

Solve the following problems. Show your complete solutions.

For Items number 1 – 2.

The population of a certain animal in an area is represented by the equation

y = 750(0.95)t where t is the number of years since the year 2000.

1. In the given equation,

a. What does 750 represent?

b. What does 0.95 represent?

2. Compute the predicted population of a certain animal in the year 2010.

Round your answer to nearest whole number.

For Items number 3-4.

A computer valued at ₱150,000 depreciates at the rate of 12.3% per year.

3. Write a function that models the value of the computer.

4. Find the value of the computer after four years.

Practice Task 3

Solve the problem below.

You decided to put ₱25,000 into a bank account. You are told that you will get
an annual interest rate of 2.5% compounded monthly.

1. How much money will you have after 12 years?

2-3. Should you invest in an account compounded daily or monthly if they

are offering the same interest rate? Justify your answer.

- End of Practice Tasks –

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 Post-Test

Directions: This test will evaluate your knowledge and skills after completing this
module. Read each question/item and encircle the letter that corresponds to your answer.
Show your complete solutions. (Please use scientific calculator if necessary)
1. In year 2000, a small province had a population of 20,000 people which triples
every 20 years. What is the exponential model that will represent the given
situation?
20
1 𝑡
A. 𝑦 = 20000(3) 𝑡 C. 𝑦 = 20000 ( )20
3
1 20 𝑡
B. 𝑦 = 20000(3) 𝑡 D. 𝑦 = 20000 (3)20

2. In item number 1, what was the population in year 2010? (Rounded to

whole number)

A. 34,639 people C. 34,641 people

B. 34,640 people D. 34,642 people
3. The half-life of a certain radioactive substance is 300 years. Initially, there
were 200 g of the substance. What is the exponential model representing this
situation?
𝑡 𝑡
1 1
A. 𝑦 = 200 ( )300 C. 𝑦 = 300 ( )200
2 2
𝑡 𝑡
B. 𝑦 = 300 (2) 200 D. 𝑦 = 200 (2)300

4. In item number 3, how much substance will remain after 60 years? (Rounded
to whole number)

A. 174 g C. 172 g
B. 173 g D. 171 g
5. You deposit ₱50,000 in a savings account paying 6.5% interest compounded
semi-annually. How much money will be in your savings after 5 years?
(Rounded to whole number)

A. ₱68,854 C. ₱68,864
B. ₱68,845 D. ₱68,846

- End of Post-Test-

Assignment
Solve the problem below. Show your step by step solution.
A certain bacteria can multiply at an alarming rate when each bacteria
splits into to three new cells, thus tripling. If a scientist starts with two bacteria
which can triple every hour, how many bacteria will she have by the end of the
day?

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References:
General Mathematics Learner’s Material (DEPED e-Copy) Pages 77-81
Exponential Functions and Sequences
http://rchs.rccu1.net/common/pages/DisplayFile.aspx?itemId=30479969

Answer Key

PRE-TEST
1. C
2. B
3. B
4. B
5. A

PRACTICE TASK 1
1. a) y = 200(1.05)t b) 268
2. a) y = 500,00(0.96)t b) y = 407,686
3. a) y = 10,000(1.03)t b) y = 11,941
4. y = 6,095
5. y = 42

PRACTICE TASK 2
1. a) initial population b) decay factor
2. y = 449
3. y = 150,000(0.877)t
4. y = 88,734

PRACTICE TASK 3
1. y = 33,736
2. I should invest in an account compounded daily rather than monthly if
they are offering the same interest rate.
3. Justification:
For an account compounded daily, the amount invested at the
end is y = 33,746 while for an account compounded monthly, the
amount invested at the end is y = 33,736. Hence, the amount invested
at the end for an account compounded daily is higher than the amount
invested at the end for an account compounded monthly.
POST TEST
1. D 2. C 3. A 4. A 5.B
ASSIGNMENT
y = 564,859,072,962

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