Intermediate Algebra: Connecting Concepts through Application

Published by Brooks Cole
ISBN 10: 0-53449-636-9
ISBN 13: 978-0-53449-636-4

Chapter 5 - Exponential Functions - 5.5 Exponential Growth and Decay Rates and Compounding Interest - 5.5 Exercises - Page 469: 3

Answer

$25\%$ growth.

Work Step by Step

Growth or decay rate $r=b-1$ where $r$ is a percentage written as a decimal and $b$ is the base of an exponential function of the form $g(x)=a\cdot b^{x}$. Given $g(x)=130(1.25)^{x}$ $\implies b=1.25$ $r=b-1=1.25-1=0.25$ Or $r=0.25\times100 \%=25\% $ $r$ is positive. So, there is $25\%$ growth.
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