Exponential growth occurs when a quantity increases by the same factor over equal intervals of time. This leads to an exponential function, where the independent variable in the exponent, is time. Since the quantity increases over time, the constant multiplier has to be greater than Thus, can be split into two terms, and where is some positive number. The resulting function is called an exponential growth function.
The constant can then be interpreted as the rate of growth, in decimal form. A value of for instance, means that the quantity increases by over every unit of time. As is the case with all exponential functions, is the -coordinate of the -intercept. The base of the power, is known as the growth factor, and since it's greater than the quantity grows faster and faster, without bound.