Final answer:
In the equation y = 2(1.03)^t, the number 2 represents the initial value, while the factor 1.03 represents a growth rate of 3%, indicating exponential growth.
Step-by-step explanation:
In the equation y = 2(1.03)^t, the number 2 represents the initial value or starting amount of whatever is being measured, such as a population or the amount of a substance. This is not the growth rate. The growth rate in this equation is represented by 1.03, which indicates that the quantity is expected to grow by 3% each time period (e.g., each year if t is in years). The fact that the growth rate is greater than 1 (1.03) suggests that this is a scenario of exponential growth, not decay.
It's worth noting that for small values of the growth rate (p), like 0.03 in this case, the equation reflects approximate exponential growth. This is because the natural log of 1 + p, where p is small, is approximately equal to p. Thus, the equation simplifies the understanding of the growth process over time.