Question

Given the following exponential function, identify whether the change representsgrowth or decay, and determine the percentage rate of increase er decrease.y = 2500(1.04)

Answer 1

The equation of a exponential function is of the form

$y=a(b)^x$

where

b is the base of the exponential function

If the value of b>1 -----> is a growth function

If the value of b<1 ----> is a decay function

In this problem

b=1.04

1.04 > 1

therefore

Is a growth function

Part b

Determine the percentage rate of increase

we have that

b=1+r

r=b-1

r=1.04-1

r=0.04

convert to percentage

r=0.04*100

r=4%