What information does r give in the exponential growth function y = a(1+r)^x?
Rate of growth
Practice makes perfect
Exponential functions that increase by a constant factor or percentage over equal intervals of x are called exponential growth functions. They can be written in the format shown below.
y = a(1+r)^x
Here, a represents the initial quantity and r tells us how fast the function is growing as a percentage, written in decimal form. This is why r is known as the rate of growth . With this in mind, we can complete the exercise's sentence.
In the exponential growth function y = a(1+r)^x, the quantity r is called the rate of growth.
