Model exponential growth and decay, including compound interest and half-life, and evaluate the models.
Exponential growth and decay both follow the same shape, y = a*b^x, where a is the starting amount and b is the growth factor per time period: b > 1 means growth, and 0 < b < 1 means decay. Compound interest is the most common growth example: A = P(1 + r/n)^(nt), where P is the principal, r is the annual rate, n is the number of times it compounds per year, and t is the number of years.
Half-life is the classic decay example: the amount remaining after time t is A = A0 * (1/2)^(t / h), where h is the half-life -- the exponent counts how many "half-life periods" have elapsed, not the raw time itself. Both formulas are really the same idea underneath: repeated multiplication by a fixed factor, tracked through an exponent.
Mastery looks like: They correctly set up and evaluate a compound interest or half-life model, identifying growth versus decay from the base.
Common stumbles: Using elapsed time directly as the exponent in a half-life problem instead of dividing by the half-life first; mixing up which number is the rate and which is the number of compounding periods.
See it visually
Interactive, spoken-aloud tools that show this idea in motion.