When a quantity increases by the same factor over equal intervals of time, it is said that such a quantity is in exponential growth. Exponential growth is modeled using exponential functions where a>0 and b>1.
In this form, a is the initial amount, the base b is the growth factor, and t usually represents time. Like any other exponential function, a also represents the y-intercept.
As shown, the greater the base b, the faster the exponential function grows. Since the base b is greater than 1, it can be written as the sum of 1 and some positive number r. This constantr can then be interpreted as the rate of growth, in decimal form.
For example, r=0.06 means that the quantity increases by 6% over every unit of time.