6.2.5

Compound Growth & Decay

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Compound Growth and Decay

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Growth and decay

  • When an amount increases or decreases by a set percentage on a regular basis this is called compound growth or compound decay.
  • The amount that is lost/gained changes with each interval since the amount lost/gained is a percentage of the current amount.
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Formula

  • This formula gives the amount after n intervals:
    • N = S × (multiplier)n
  • Where S is the starting amount and the multiplier is the percentage multiplier:
    • 1.25 for a 25% increase or 0.6 for a 40% decrease.

Jump to other topics

1Proof

2Algebra & Functions

2.1Powers & Roots

2.2Quadratic Equations

2.3Inequalities

2.4Polynomials

2.5Graphs

2.6Functions

2.7Transformation of Graphs

2.8Partial Fractions (A2 Only)

3Coordinate Geometry

4Sequences & Series

5Trigonometry

6Exponentials & Logarithms

7Differentiation

8Integration

9Numerical Methods

10Vectors

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