Question

The function y= 15.35 (1.0279)^t represents the value y(in dollars) of a share of stock after t days. Identify the initial amount and determine the growth or decay rate.

Answer 1

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Answer:

• initial amount: $15.35
• growth: 2.79% per day

Explanation:

The coefficient is the initial amount: $15.35.

The growth factor is the base of the exponential term: 1.0279. The growth rate is 1 less than this: 1.0279 -1 = 0.0279 = 2.79%. It is positive, so represents a growth of 2.79% per day.