Question

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

y=570(0.98)^x

Answer 1

decay

2% decrease

Explanation:

The growth factor is the base of the exponent: 0.98. Its relation to the rate of change is ...

growth factor = 1 + rate of change

0.98 = 1 + (-0.02)

So, the rate of change is -0.02 = -2%. Since the rate of change is a 2% decrease, it represents decay.