Question

6.5% growth

Answer 1

help

Answer 2

Like, in a function \(y = b^x\)?

Answer 3

If we have growth in the function, then that means "b" has to be greater than 1.
This comes from the fact that the "x" just multiplies the "b" value to itself, x times, and if we have a number less than 1, it tends to get smaller: "0.5 * 0.5 = 0.25, 0.25 * 0.5 = 0.125..."

So, if we have a growth, it is usually considered that we already have 100%, and we're adding onto it 6.5% more. We write that in decimal form: 1 + 0.065. This would be the b-value.

y = (1 + 0.065)^x
y = 1.065^x < and since we have a "b" greater than 1, it's growth.
for x=1, y=1.065; for x = 2, y=1.134225... it's getting bigger. :)