Question

Two math students were asked to write an exponential growth equation 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:

The correct formula for Exponential growth rate is given as:

y = a( 1 + r) ^t

Where

y = Amount after time t

a = Initial amount

r = Growth rate

t = time

From the question

a = 300

r = 2% = 0.02

Hence, our exponential growth rate =

y = 300( 1 + 0.02)^t

y = 300( 1.02)^t

Therefore, Pierre is right