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Ratio & ProportionIntroduction

What Is Exponential Change?

Part of Compound Interest — GCSE Mathematics

This introduction covers What Is Exponential Change? within Compound Interest for GCSE Mathematics. Revise Compound Interest in Ratio & Proportion for GCSE Mathematics with 12 exam-style questions and 4 flashcards. This topic appears regularly enough that it should still be part of a steady revision cycle. It is section 1 of 5 in this topic. Use this introduction to connect the idea to the wider topic before moving on to questions and flashcards.

Topic position

Section 1 of 5

Practice

12 questions

Recall

4 flashcards

What Is Exponential Change?

Imagine bacteria doubling every hour: 1→2→4→8→16→32... After 10 hours: over 1000! This explosive increase is exponential GROWTH. Radioactive decay works the opposite way - half disappears each time period. These patterns appear in population growth, compound interest, and depreciation.

Keep building this topic

Read this section alongside the surrounding pages in Compound Interest. That gives you the full topic sequence instead of a single isolated revision point.

Key FactsMethod: Exponential ProblemsWorked Example 1: Population Growth

Practice Questions for Compound Interest

Which formula correctly calculates the amount A after compound interest at rate r% per year for n years on principal P?

  • A. A = P × (1 + r/100) × n
  • B. A = P × (1 + r/100)^n
  • C. A = P + P × r/100 × n
  • D. A = P × r^n / 100
1 markfoundation

£2,000 is invested for 4 years. - Account A pays 5% simple interest per year. - Account B pays 4.5% compound interest per year. Which account gives more money after 4 years? Show all working.

3 marksstandard

Quick Recall Flashcards

Growth vs Decay
Growth: multiply by (1+r). Decay: multiply by (1-r). The multiplier is raised to the power of n (time periods).
Exponential Decay
N = N₀ × (1 - r)^t for decay rate r

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