Growth or Decay?Exponential growth Percent Rate of Change: 20 %
Practice makes perfect
Let's start by recalling the general formulas of exponential growth and exponential decay functions.
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Exponential Growth & Exponential Decay [0.8em]
y=a(1+r)^t & y=a(1-r)^tIn both cases a and r are positive numbers. For exponential decay, r is less than 1. Let's rewrite the given function to match one of the above formulas.
Our function matches the format of exponential growth. Here a= 1 and r= 0.2.
f(t)= 1(1+ 0.2)^t
This means that the rate of growth — also known as the percent of change — is 20 %.
