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, 15, left parenthesis, 1, point, 0, 7, right parenthesis, to the power x
y=15(1.07)
x

Answer 1

Since the base 1.07 > 1, this is exponential growth. The growth rate is (1.07 − 1) × 100% = 7% per unit increase in x. The initial value (when x = 0) is 15.