Given the following exponential function, identify whether the change represents growth or decay, and determine the percentage rate of increase or decrease.

Question

y=3300(1.075)^x

That is the exponential function

Answer 1

This equation represents exponential growth. Whenever the base is greater than 1, the function represents growth. When the base is less than 1, the function represents decay. In this case, the base is 1.075 which is greater than 1, representing growth.

The formula for exponential growth is y=a(1+r)^x.

r is the decay rate, expressed as a decimal.

In this case, r = .075 which represents 7.5%!