Question

Given the following exponential function, identify whether the change represents growth or decay, and determine the percentage rate of increase or decrease. y = 57(1.05)x

Answer 1

You have the following exponential function:

y = 57(1.05)ˣ

the general form of an exponential function is given by:

y = abˣ

if b is greater than 1, then, the percentage rate increases, otherwise, decreases.

In this case, b = 1.05, and the rate of increase is given by 1.05 - 1.00 = 0.05

which is equivalent to an increase of 5%.

Then:

The rate of increase is 5% and the change represent a growth