As the largest type of mathematical growth, the many types of exponential growth can seem too massive to comprehend. However, whether through compound interest, Moore’s Law or the Coronavirus pandemic, it has become a foundation of all our lives, from compound interest to Moore’s Law. This is exponential growth, and its rise to prominence in our lives.
Using Exponential Growth
In the world we live in, exponential growth is being proven useful in our day to day lives. Even if you’re not using it to earn an all-you-can-eat supply of rice, as the inventor of chess once did, its many uses have definitely made an impact on your life.
One of the most common examples of exponential growth is compound interest. Now the standard at any bank, in compound interest the interest added grows over time, and allows you to turn a modest investment into a substantial sum, calculated using the formula A−P(1+r∕n)nt where: A represents the Total amount, P the Principle (starting) amount, r the interest rate as a decimal, n the number of times interest is compounded over a year, and t the time in years.
Another, lesser known, example of exponential growth can be found in the technology industry. In 1965, Gordon Moore, who later became a founder of Intel, used prior data to devise Moore’s Law. After being revised in 1975, it states that “The Number of Transistors in a dense Integrated Circuit (microchip) of the same size doubles about every 2 years.”
Recently, the industry has been discussing whether Moore’s law has started reaching its end, due to the physical limits of silicon. However in the past, this law has created targets for major technology brands ever since, and has allowed for the creation of more advanced processors that benefit our day-to-day lives. The increase in number of transistors allows for more advanced computational devices, and the realisation of this trend has helped them develop further.
This article is still being developed and may be updated or expanded in the future.