Nate T. answered • 02/14/20

Electrical Engineer with Experience Tutoring Math and Physics

Constant growth means that it grew by the exact same **amount** every year.

Investment A grew by $300, $200, $300, $200. That is not constant growth.

Investment B grew by $200, $210, $221, $231. That is not constant growth.

For exponential growth to occur, it will increase by the same **percentage** each year.

To calculate percent growth, divide the new value by the old value. subtract 1, then multiply by 100 to get into percent growth form.

Investment A grew by 8.57%, 5.27%, 7.5%, 4.65%. That is not exponential growth.

Investment B grew by 5%, 5%, 5.01%, 4.99%. **That is exponential growth** (with some rounding errors, because you'll rarely end up with exact whole numbers in growth equations)

example of calculating percent growth:

4200/4000 = 1.05

1.05-1 = 0.05

0.05*100 = 5%

4410/4200 = 1.05

etc...

Hope this helps! let me know if you have any questions!