Answer
The function represents exponential growth and the rate of growth is $8\%$
Work Step by Step
The given function is
$\Rightarrow y=5(1.08)^t$
$\Rightarrow y=5(1+0.08)^t$
The function is of the form
$y=a(1+r)^t$, where $1+r>1$.
So, it represents exponential growth.
Growth factor is
$\Rightarrow 1+r=1.08$
Subtract $1$ from each side.
$\Rightarrow 1+r-1=1.08-1$
Simplify.
$\Rightarrow r=0.08$
$\Rightarrow r=8\%$.
Hence, the function represents exponential growth and the rate of growth is $8\%$
