Question

Given the following exponential function, identify whether the change represents

growth or decay, and determine the percentage rate of increase or decrease.
y=330(1.46)

Answer 1

It is growth and the percentage increase is 46%

Explanation:

The general form of an exponential function is;

Y = I(1 + r)^n

where Y is the present value, I is the initial, r is the growth or decay ratio, n is the number of times

To know if an exponential function is growth or decay, we need to know the repeating factor

If repeating factor is greater than 1, we have growth, if otherwise we have decay (less than 1).

As we can see in this case, we have r greater than 2, so what we have is growth

To get the percentage increase since it is growth, we equate;

1.46 = 1 + r

r = 1.46-1

r = 0.46 which is same as 46%