Graph exponential functions, model growth and decay, and evaluate continuous growth using the natural base e.
An exponential function f(x) = a*b^x grows (if b>1) or decays (if 0<b<1) by multiplying by the same factor b every time x increases by 1 -- the opposite of a polynomial, which ADDS the same amount every step. Its graph always passes through (0,a), always stays on one side of the x-axis (b^x is never 0 or negative), and has a horizontal asymptote at y=0.
The number e (approximately 2.71828) is the natural base of continuous growth -- growth that compounds constantly, at every instant, rather than at fixed intervals like monthly or yearly. Continuous growth or decay follows A = A0 * e^(kt), where A0 is the starting amount, k is the continuous rate (positive for growth, negative for decay), and t is time. This is the limiting case of compounding more and more often, forever.
Mastery looks like: They correctly identify growth versus decay from the base, and evaluate both ordinary and continuous exponential models.
Common stumbles: Forgetting to multiply rate and time before exponentiating e; confusing the continuous-rate formula with the once-per-period growth formula.
See it visually
Interactive, spoken-aloud tools that show this idea in motion.