Repeated percentage change is multiplicative. Growth uses a factor above one, decay uses a factor between zero and one, doubling counts factors of two, and half-life counts factors of one half.
Learning objectives
- Convert a percent increase or decrease to the correct multiplier.
- Build and evaluate \(P(1\pm r)^t\) models.
- Interpret \(t/d\) as the number of doubling or half-life intervals.
- Compare two exponential models without premature rounding.
Percentage growth and decay
Write \(r\) as a decimal and match \(t\) to the model's period unit.
| Situation | Rate | Multiplier | Model |
|---|---|---|---|
| Increase each period | \(r\) | \(1+r\) | \(P(1+r)^t\) |
| Decrease each period | \(r\) | \(1-r\) | \(P(1-r)^t\) |
| Double every \(d\) units | Not a percent input | \(2\) per interval | \(P\cdot2^{t/d}\) |
| Half-life \(d\) | Not a percent input | \(\frac12\) per interval | \(P(\frac12)^{t/d}\) |
Build and evaluate a decay model
A device worth \(24000\) loses \(9\%\) of its value each year. Find its modeled value after \(4\) years.
- Initial value
\(P=24000\).
- Decay factor
\(1-r=1-0.09=0.91\).
- Substitute
\(A=24000(0.91)^4\).
- Calculate once
\(A\approx16457.99\).
Doubling-time growth
The exponent \(t/d\) counts how many doubling intervals have elapsed.
- \(t=0:\ P\)
Initial amount
- \(t=d:\ 2P\)
Multiply the current amount by two.
- \(t=2d:\ 4P\)
Multiply by two again.
- \(t=3d:\ 8P\)
Three doublings produce eight times the start.
Half-life decay
Every interval of length \(d\) halves the amount currently remaining.
- \(t=0:\ P\)
Initial amount
- \(t=d:\ \frac P2\)
One half remains.
- \(t=2d:\ \frac P4\)
One half of the previous amount remains.
- \(t=3d:\ \frac P8\)
Three half-lives leave one eighth.
- \(t=4d:\ \frac P{16}\)
Four half-lives leave one sixteenth.
Find an unknown rate without logarithms
Use a solvable square relationship
An amount grows from \(1000\) to \(1440\) in two annual periods at rate \(r\). Find \(r\).
- Set up
\(1440=1000(1+r)^2\).
- Divide
\((1+r)^2=1.44\).
- Use the positive factor
\(1+r=1.2\), because a growth multiplier is positive.
- Solve
\(r=0.2=20\%\).
Build a model from context
- Identify the start
This becomes \(P\), so the model must return \(P\) at \(t=0\).
- Identify the change
Convert a percent to a decimal, or identify doubling/half-life language.
- Build the factor
Use \(1+r\), \(1-r\), \(2\), or \(\frac12\) as appropriate.
- Count periods
Use \(t\) for per-period models and \(t/d\) for doubling or half-life intervals.
- Validate
Check the model at \(t=0\) and after one stated interval.
Common mistakes and traps
- Writing \(6\%\) as \(6\) instead of \(0.06\).
- Using \(r\) rather than \(1+r\) or \(1-r\).
- Replacing repeated percentage change with a linear model.
- Treating doubling as adding the original amount every interval.
- Subtracting the same fixed amount for each half-life.
- Using \(td\) instead of \(t/d\) in a doubling or half-life exponent.
- Rounding intermediate exponential values too early.
Choose the correct multiplier
A quantity decreases by \(14\%\) each month. Which multiplier belongs in its model?
- \(0.14\)
- \(0.86\)
- \(1.14\)
- \(14\)
Show answer and explanation
Answer: \(0.86\)
A decrease keeps \(100\%-14\%=86\%\) each month, so the factor is \(0.86\).
Key takeaways
What to remember
- Percent growth uses \(1+r\); percent decay uses \(1-r\).
- Doubling uses \(2^{t/d}\); half-life uses \((\frac12)^{t/d}\).
- At \(t=0\), every correctly built model returns the initial value \(P\).
- Keep full precision until the requested final rounding step.
Put these notes into practice
Apply the ideas with SAT-style questions, then reinforce key details with flashcards.