What is the general form of an exponential function? What does each of the values represent?
Initial amount: 25 600 Growth factor: 1.01
Practice makes perfect
We want to identify the initial amount a and the growth factor b in the given exponential function. To do so, let's first recall the general form of an exponential growth function.
y= a * b^x, where a>0 and b>1
Here, a is the initial amount and the base b is the growth factor. Let's now consider the given function.
y= 25 600 * 1.01^x
We see that a= 25 600 and b= 1.01. Therefore, the initial amount is 25 600 and the growth factor is 1.01.
