Question

Given the following exponential function, identify whether the change represents growth or decay, and determine the percentage rate of increase or decrease.
y, equals, 420, left parenthesis, 1, point, 0, 4, right parenthesis, to the power x
y=420(1.04)
x

Answer 1

This is exponential growth because the base 1.04 > 1. The growth rate is 1.04 − 1 = 0.04 = 4% per unit increase in x. The initial value (at x = 0) is 420.