Recall that the general form of an exponential function is where is a factor that can shrink, stretch, or reflect the function. The base must be positive. If and then we have an exponential growth function and is called the growth factor.
On the other hand, if the base is but we have an exponential decay function and is known as the decay factor.
We can compare the given function to the general form of an exponential function to identify its parameters and determine if it represents exponential growth or exponential decay. Notice that is positive. Furthermore, the base is the natural base , which has an approximate value and is greater than Hence, the function represents exponential growth.