Answer :

Answer:

  • rate of change: -2% per period
  • exponential decay

Step-by-step explanation:

You want to know the rate of change represented by the function y = 0.98^x, and whether it is exponential growth or decay.

Growth factor

The base of the exponent in an exponential function is the "growth factor".

When it is less than 1, the function represents exponential decay.

When it is more than 1, the function represents exponential growth.

The growth factor of 0.98 is less than 1, so this is an exponential decay function.

Rate of change

The growth factor is 1 added to the growth rate. This means we can subtract 1 from the growth factor to find the growth rate:

  growth rate = 0.98 -1 = -0.02 = -2%

The rate of change in the given function is -2%. (The negative indicates exponential decay.)