Question

Given the following function, determine the starting value and rate of growth/ decay.

y=47.3(1.026)^x

Answer 1

Starting value: 47.2

Growth rate: 2.6%

Explanation:

1.026 > 1 so it's a growth

1.026 × 100

102.6% of the previous value

Growth rate: 102.6 - 100

2.6%

Answer 2

initial value 47.3

growth rate 2.6%

Explanation:

This is in the form

y = ab^x where a is the initial value and b is the growth/decay rate

b>1 it is growth b<1 decay

a = 47.3

b > 1 it is growth

The growth rate is b-1 1.026-1 =.026 = 2.6 percent