EXPLORATIONS
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EXPLORATIONS
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EXPLORATIONS
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EXPLORATIONS
EXPLORATIONS 315
So You Want to Be a Millionaire?
OBJECTIVE To become familiar with the rapid rate of growth of exponential
functions.
If you want to be a millionaire, you can start by taking Benjamin Franklin’s wise
advice:
“A penny saved is a penny earned.”
But you’re going to have to save more and more pennies each day. So suppose you
put a penny in your piggy bank today, two pennies tomorrow, four pennies the next
day, and so on, doubling the number of pennies you add to the bank each day. Let’s
call the first day we put a penny in the bank Day 0, the next Day 1, and so on. So on
Day 3 you put 8 pennies in the bank, on Day 5 you put in 32 pennies, and on Day 10
you put in 1024 pennies, or about 10 dollars worth of pennies.
This doesn’t seem like an effective way of becoming a millionare; after all,
we’re just saving pennies. How many years does it take to save a million dollars this
way? We’ll work it out in this exploration, and in the process we hope to improve our
intuition for exponential growth.
I. How to Save a Million Dollars
1. (a) Complete the table for the number of pennies saved each day.
2
Day x 0 1 2 3 4 5
Pennies saved f 1x2
1
Day x 0 1 2 3 4 5 6 7 8 9
Pennies saved f 1x2
1
Day x 10 11 12 13 14 15 16 17 18 19
Dollars saved
$1 0
Day x 20 21 22 23 24 25 26 27 28 29
Dollars saved
$10,000
(b) The number of pennies saved each day grows exponentially. What is the
growth factor? What is the initial value? Find an exponential function
that models the number of pennies saved on day x.
x
2. Let’s complete the table for the number of pennies saved on each day for 30
days, without using a calculator—but we’ll make the calculations easier by
making some approximations. On Day 10 we must save , or 1024 pennies.
Since this is about $10, we’ll write $10 instead of the 1024 pennies. On Day
20 we must save pennies; check that this is approximately $10,000.
2
20
2
10
f 1x2=
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f 1x2= Ca
x