Question

Two math students were asked to write an exeponential growth equations that had a starting value of 300 and a growth rate of 2%. Pierre thinks the answer is y=300(1.02)^x and Scott thinks that the answer is y=300(1.2)^x. Are either of them right and why?

Answer 1

Pierre is right.

Explanation:

A growth rate of 2% means that the values is increasing by 0.02 each year so the multiplying factor is 1.02.

Pierre is correct y = 300(1.02)^x.

Scotts answer 1.2 = a growth rate of 20%.