Question

does this represent exponential growth or exponential decay and identify the percent rate of changedetermine whether y= 500(1.08)t represents exponential growth or exponential decay and identify the rate of change.

Answer 1

Given:

`500\mleft(1.08\mright)^t`

To determine whether it represents exponential growth or exponential decay:

Since, the general exponential growth formula is,

`f\mleft(x\mright)=a\mleft(1+r\mright)^x`

Hence, the given represents exponential growth.

Comparing we get,

1+r=1.08

r=0.08

That is, r=8%

Therefore, the percentage rate of change is 8%.