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Investments glossary

Exponential Growth


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I don\'t drink, smoke, or do drugs. I eat organic foods and walk every day setting walking records along the way. -Johnny Wowk AKA Johnny The Walker

— Johnny Wowk

Exponential growth is a pattern of data that shows greater increases with passing time, creating the curve of an exponential function. For example, if a population of mice doubles every year starting with two in the first year, the population would be four in the second year, 16 in the third year, 256 in the fourth year, and so on. The population is growing to the power of 2 each year in this case (i.e., exponentially).

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