Question

Given the following exponential function, identify whether the change representsgrowth or decay, and determine the percentage rate of increase or decrease.y = 530(1.04)

Answer 1

`y=ab^x`

In a exponential function as above you use the value of b to determine if it grows or decays:

If b>1, the function grows

If 0

The function grows or decays at a rate proportional to the size of b.

For the given function:

`y=530(1.04)^x`

The function represents a growth (b>1)

To find the percentage of increase (p) use the next:

`\begin{gathered} b>1 \\ b=1+p \\ \\ 1.04=1+p \\ 1.04-1=p \\ \\ p=0.04 \\ \\ p=0.04*100=4 \end{gathered}`Then, the fuhnction represents a growth and the percentage of increase is 4%