Question

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

y=3100(0.365)^x




Growth

% increase

Answer 1

63.5

Explanation:

Answer 2

Decrease of 63.5%.

Explanation:

Exponential function:

An exponential function has the following format:

`y = y(0)(1+r)^(x)`

In which y(0) is the initial value and r is the rate of change, as a decimal. If r is positive, it is a increase. If it is negative, it is a decrease.

In this question:

We have that:

`y = 3100(0.365)^x`

So

`1 - r = 0.365`

`r = 0.365 - 1 = -0.635`

So a decrease of 63.5%.