IB skill practice

Model with exponential functions

Use exponential models for growth, decay, and repeated percentage change.

Paper 1, Paper 2 5 marks Difficulty 5

Index model forecast

An index is modelled by \(I(t)=250(0.9)^t\). Predict \(I(4)\) to three decimal places.

Worked practice: result and interpretation

Calculate the requested result first, then choose the interpretation that follows from it.