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MathematicsA-Level 9 min read

Exponential Growth & Decay

Drag along the curve and watch the tangent slope equal the height — the defining property of eˣ. Growth, decay and why e matters, made visual.

The ScholarsGate Maths Team·Updated 08 Jul 2026

On this page

  • Growth that feeds on itself
  • See it: rate equals height
  • Why e is special
  • Worked example
  • Common mistakes
  • Practice
  • FAQ

Bacteria in a dish, money in a savings account, a radioactive sample, a viral rumour — whenever the rate of change depends on how much is already there, you get exponential behaviour: the runaway curve that doubles, and doubles, and doubles again.

Growth that feeds on itself

A quantity grows exponentially when its rate of growth is proportional to its current size. The more there is, the faster it grows — so it keeps doubling over equal time intervals. Flip the sign and you get exponential decay, which halves over equal intervals instead.

The standard model is N = N₀eᵏᵗ, where N₀ is the starting amount, t is time, and k is the growth constant — positive for growth, negative for decay. That constant multiplier is the whole point: exponential change multiplies, it does not add.

Multiply, don’t add

Linear change adds a fixed amount each step (+3, +3, +3 …). Exponential change multiplies by a fixed factor each step (×2, ×2, ×2 …). That single difference is why exponential curves eventually leave every straight line far behind.

Interest earns interest; the bigger it gets, the faster it grows.

See it: slopes and doubling

Switch between the curves below and drag the point along each. For eˣ watch the tangent: its slope exactly equals the height of the curve at every position. Then compare the falling decay curve e⁻ˣ against the doubling curve 2ˣ.

InteractiveExponential growth & decay
Loading interactive…
Switch between eˣ, e⁻ˣ and 2ˣ and drag the point. For eˣ the tangent slope equals the height.
Text description ↓Hide text description ↑

A graph of exponential functions with a draggable point and tangent. For eˣ the slope of the tangent always equals the height of the curve — the defining property that makes e the natural base. The decay curve e⁻ˣ falls towards zero, halving over equal intervals, while 2ˣ doubles over equal intervals.

Why e is the natural base

You could write exponential growth with any base — 2ᵗ, 10ᵗ, whatever suits. So why does e ≈ 2.718 get called the natural base? Because of one beautiful property: the function eˣ is its own derivative.

eˣ is its own slope

At every point on y = eˣ, the gradient of the tangent equals the height of the curve. In symbols, d/dx (eˣ) = eˣ. That is exactly the “rate proportional to amount” rule written as calculus — which is why every rate-proportional-to-size process is modelled most cleanly with base e.

Choose any other base and a stray constant (a natural log) tags along when you differentiate. Base e is the one that makes it vanish, so e is the base that Nature — and every exam mark scheme — prefers.

Worked examples

1Worked example — a doubling bacterial culture

A culture starts with 500 cells and doubles every hour. Write a model for the number of cells N after t hours, and find the population after 3 hours.

Doubling each hour means multiplying by 2 every step, so N = 500 × 2ᵗ. After 3 hours: N = 500 × 2³ = 500 × 8 = 4000 cells. Notice how the same base-2 idea can also be written with base e as N = 500eᵏᵗ where k = ln 2 ≈ 0.693 — the two forms describe the identical curve.

The same shape drives continuous compound interest: money invested at a continuous rate follows N = N₀eᵏᵗ, growing by a fixed percentage of its current value in every instant rather than a fixed number of pounds.

Common mistakes

Confusing linear with exponential growth

Adding a fixed amount each period (10, 20, 30, 40 …) is linear. Multiplying by a fixed factor each period (10, 20, 40, 80 …) is exponential. “Grows by 5 a year” is linear; “grows by 5% a year” is exponential — read the wording carefully.

Thinking only base e counts

e is the natural base, but it is not the only exponential base. Any base greater than 1gives exponential growth (2ˣ, 1.05ˣ, 10ˣ …), and any base between 0 and 1 gives decay. e is just the most convenient for calculus.

Practice

Your turn

A population grows by 5% every year. Is that linear or exponential growth, and what is the growth factor per year?

Show the answer ↓Hide the answer ↑

It is exponential: a fixed percentage means multiplying by the same factor each year, not adding a fixed amount. The growth factor is 1 + 0.05 = ×1.05 per year, so after t years the population is N₀ × 1.05ᵗ.

Where next?

The inverse question — “how long until it doubles, or halves?” — is answered with logarithms, the natural companion topic that unpicks an exponent to solve for time.

Key takeaways
  • Exponential change has a rate proportional to current size, so it doubles (growth) or halves (decay) over equal intervals.
  • The standard model is N = N₀eᵏᵗ: k > 0 for growth, k < 0 for decay.
  • e is the natural base because eˣ is its own derivative — the tangent slope equals the height at every point.
  • Linear growth adds a fixed amount; exponential growth multiplies by a fixed factor — “+5” versus “+5%”.
  • Any base greater than 1 grows exponentially; e is simply the most convenient base for calculus.

Frequently asked questions

What is exponential growth?+
Exponential growth is when a quantity increases at a rate proportional to its current size, so it doubles over equal time intervals. Written as a function it takes the form N = N₀e^{kt} with k > 0; decay is the same with k < 0.
Why is eˣ special?+
The function eˣ is its own derivative: at every point the slope of the tangent equals the height of the curve. That makes e the natural base for any process whose rate of change is proportional to its current amount.
What is the difference between exponential growth and decay?+
Both change at a rate proportional to the current amount. Growth (k > 0) increases without bound and doubles at a fixed interval; decay (k < 0) falls towards zero and halves at a fixed interval — the half-life.
How do you differentiate an exponential function?+
The derivative of e^{kx} is k·e^{kx}, and the derivative of a^x is a^x·ln a. Because the derivative is a multiple of the original function, the rate of change is always proportional to the value.
SM

The ScholarsGate Maths Team

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