Question

Given the following exponential function, identify whether the change representsgrowth or decay, and determine the percentage rate of increase or decrease y=5600(1.07)^x

Answer 1

y= 5600 (1.07)^x

Base = 1.07

When the base of an exponential function is greater than one, it represents growth.

We can rewrite the base as:

1.07 = 1+r= 1 +0.07

r=0.07

r= increase rate

Percentage rate of increase = 0.07 x 100 = 7%