Question

Y = 2000 (1.05)^t

Is this function a growth or decay?
What is the growth or decay rate for this function? Write it as a percentage.
%

Answer 1

The function

`y = 2000 (1.05)^t`

is an exponential growth function with a growth rate of 5% per period.

Step-by-step explanation:

The function

`y = 2000 (1.05)^t`

represents an exponential growth because the base of the exponent, 1.05, is greater than 1. This results in the quantity increasing over time. In this function, the growth rate r can be determined from the base of the exponent. As the base is 1.05, it indicates that the quantity is growing at 5% per period (since 1.05 is equal to 1 + 0.05, with 0.05 representing the 5% growth). Therefore, the growth rate for this function is 5%.