Question

Hello! Could y’all please explain why this is Decay and not growth?

Answer 1

This is an Exponential Decay

Explanation:

A = 1200(0.85)⁶

The above expression is an Exponential Decay because 0.85 is less than 1

The formula for Exponential Decay

= y = a (1 - r)^t

We equate both equation together

Where

a = 1200

1 - r = 0.85

t = 6

Solving for r

1 - r = 0.85

r = 1 - 0.85

r = 0.15

Converting to Percentage

r = 15% decay rate