Comparing two exponential models

Evaluate both models at the same time before comparing their values.

  • A larger initial value does not guarantee a larger value later.
  • A larger growth factor means a larger percentage increase per period, but the starting values matter too.
  • Substitute the same time into each model and compare the resulting outputs.

Example

Starting value and growth factor

Compare the models at the stated input.

is larger after 2 time periods.

Your turn

5 practice questions
Question 1

Which model has the larger value when ?

Check answer
is larger.
Question 2

Which model has the larger value when ?

Check answer
is larger.
Question 3

Which model has the larger value when ?

Check answer
is larger.
Question 4

Which model has the larger value when ?

Check answer
is larger.
Question 5

Which model has the larger value when ?

Check answer
is larger.