This document discusses exponential growth formulas and provides examples of how to model growth using exponential equations. The key aspects are: - The exponential growth formula is y = abx, where a is the starting amount, b is the growth factor (1 + rate), and x is the number of times the growth is applied. - The first example models the increasing daily cost of hospital care from 1985 to 1995 using an 8.6% annual growth rate. - Subsequent examples demonstrate accounting balances growing at 6.5% interest compounded annually, quarterly, semi-annually, and monthly to show the effects of more frequent compounding.