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

Question

y= 350(1.01)^x

This is the exponential function

Answer 1

Thanks for your question. To determine this answer, you need to determine the base first. That is going to be the value inside the parenthesis that has the exponent attached to it. If that base is greater than 1, it will be growth. If it is less, it will be decay.

In your example, the base is 1.01. Since 1.01>1, it is growth. To find the percentage increase, just subtract 1 from the base and convert that to a percentage. That is, 1.01-1 or 0.01 and that converts to 1%. Therefore, we have a 1% rate of increase.