The equation of a exponential function is of the form
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
<h2>Is a growth function</h2>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
<h2>r=4%</h2>