Exponential functions are a type of mathematical function characterized by their constant rate of growth or decay. These functions are in the form \( y = a e^{bx} \), where \( a \) is the initial value, \( e \) is Euler's number (approximately 2.71828), \( b \) is the rate of growth or decay, and \( x \) is the variable. The specific form of the function determines whether it models growth or decay:
- When \( b \) is positive, the function represents exponential growth, exemplifying processes such as population growth and compound interest.
- When \( b \) is negative, as in \(N(t) = 500 e^{-0.2 t}\), the function models exponential decay, illustrating phenomena like radioactive decay and depreciation of assets.
- Exponential functions have unique properties, such as never reaching zero. They asymptotically approach the \(x\)-axis (or \(t\)-axis in our case), meaning they get closer indefinitely without touching it.
Understanding exponential functions is crucial, as they are prevalent in various scientific, economic, and everyday contexts, often serving as models for real-world phenomena.