Question

Identify whether the equation represents exponential growth,decay, or neither.y=0.2(1.075)×

Answer 1

The general formula for exponential growth and decay is:

`y=a(1\pm r)^x`

where a is the initial value (that is the amount we have at the beginning) and r is the growth or decay rate. In this equation if we have a plus then we have a growth and if we have a minus we have a decay.

Now, in our case we have 1.075 as the base this can be written as:

`1+0.075`

Then we have a plus, therefore the function represent an exponential growth.