How do you determine if the equation #y = 0.84(0.94)^x# represents exponential growth or decay?

1 Answer
Johnson Z.
Mar 3, 2016

Explanation:

Recall that the general equation for an exponential equation is:

#y=a(b)^x#

where:
#a=#vertical stretch/compression
#b=#base
#x=#exponent

If #b>1#, there is exponential growth.
If #0##<##b# #<1#, there is exponential decay.

In your case, since #b=0.94# and is less than #1#, the function represents exponential decay, regardless of the value of #a#.

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