Definition · Exponential growth and decayA quantity y(t) obeys exponential growth when y′ = k·y for a constant k > 0, and exponential decay when k < 0. The number k is the rate constant.
The name describes the form of the solution, not its speed: y₀·e^(kt) is exponential for every k ≠ 0, however small.
Theorem · The exponential solutionThe solution of y′ = k·y with y(0) = y₀ is y = y₀·e^(kt).
Take y₀ > 0; for y₀ < 0 the same lines run with |y|, and y₀ = 0 gives the constant solution y = 0, which the formula covers as well. While y > 0, the equation separates as (1/y)·y′ = k, so ln y = kt + C by the method of “Separable Equations”, with 1/y integrated to ln y as in “The Integral of 1/t”.
At t = 0 that says C = ln y₀, so ln y − ln y₀ = kt, which is y = y₀·e^(kt). The check is the rate of e^(kt) from “The Exponential and Its Rate”: the rate of y₀·e^(kt) is k·y₀·e^(kt), which is k·y.
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That is a solution in closed form, and it is what every figure on this page will be compared with. It is also the only kind of statement here that is not an exact fraction: e^(kt) has no finite fraction, so the lab prints it rounded to six figures and marks it ≈.
What Euler's method does to it
Take y′ = y, y(0) = 1, h = 1/4. The first step is 1 + (1/4)·1 = 5/4. The second is 5/4 + (1/4)·(5/4) = 25/16, which is (5/4)². Every step multiplies by 5/4, because the rate is the value itself, and so after four steps, at t = 1, the lab prints 625/256, which is (5/4)⁴ exactly.
y′ = k·y, step h
yₙ₊₁ = yₙ + h·(k·yₙ) = (1 + kh)·yₙ
y₁ = (1 + kh)·y₀
y₂ = (1 + kh)²·y₀
yₙ = (1 + kh)ⁿ·y₀
k = 1, y₀ = 1, h = 1/4: factor 5/4
y₄ = (5/4)⁴ = 625/256
This is the geometric sequence of “Geometric Sequences and Series” in Algebra's Sequences and Series: each term is the previous one times a fixed ratio, here 1 + kh. Euler's method on a growth equation is that sequence under another name. The ratio is a rational number, so nothing in it is rounded.
Beside the true value
The value 625/256 is about 2.44141; the closed form at t = 1 is e ≈ 2.71828, rounded. The lab's error tile prints the difference as ≈ 0.276876. That is not because any step was computed wrongly: each step assumed the rate stayed at its starting value across the step, while the real rate kept climbing. The exact sequence is always below the curve for growth.
y′ = y, y(0) = 1, t = 1, h = 1/n, yₙ = (1 + 1/n)ⁿ
n = 1: y₁ = 2
n = 2: y₂ = 9/4 = 2.25
n = 4: y₄ = 625/256 ≈ 2.44141
n = 16: y₁₆ = (17/16)¹⁶ ≈ 2.63793
the true value: e ≈ 2.71828
As the step shrinks the sequence climbs towards e, which is the sequence met in “The Number e” in Algebra's Exponential and Logarithmic Functions, built here directly from a differential equation. That the values approach e is a claim the table suggests and does not prove; “Euler's Error and the Step Size” in the previous course measured how fast, and found the error roughly halving each time the step does.