Question

1) Given f(x) = 3(1.04)^x

a) Is the function growth or decay?

b) Determine the growth/decay rate in %.

Answer 1

a) The function is growth.

b) The growth rate in % is 4%. This can be determined by taking the natural logarithm of the coefficient (1.04) and multiplying it by 100.

ln(1.04)*100 = 3.98% ≈ 4%.