Question

Using the given table of an exponential function, determine the growth/decay factor as well as the rate of increase/decrease. Type your answers in as numbers. Example: Growth Factor: 3.5, Rate of Increase: 2.5. (Do not input your rate of increase as a percent.)

Answer 1

Growth rate is -0.25

Growth factor is 0.75

Explanation:

The general form of an exponential equation is;

y = a(1 + r)^x

Where a is the initial value

r is the growth rate

For x = 3; we have

168.75 = 400(1 + r)^3 •••• (i)

For x = 2, we have

225 = 400(1 + r)^2 •••••(ii)

Divide i by ii

That will be;

168.75/225 = 1 + r

1 + r = 0.75

r = 0.75-1

r = -0.25

The growth rate is -0.25

The growth factor is 1-0.25 = 0.75