Respuesta :
Answer:
The exponential growth model is given by this general expression:
[tex] y = a (1+r)^t[/tex]
And the exponential model decay model is given by:
[tex]y = a (1-r)^t[/tex]
Where a the initial amount r the growth factor of rate anf t the time.
The reason with we need to add 1+r in the base of the model is because each period of time [tex]t_1[/tex] we have an increase of the initial amount by a factor of (1+r) so after n periods we will have (1+r)^n times the initial amount.
Step-by-step explanation:
In general an exponential model is given by this formula:
[tex] y = a(b)^x[/tex]
Where:
a = the constant, b = the base and x x the exponent.
The exponential growth model is given by this general expression:
[tex] y = a (1+r)^t[/tex]
And the exponential model decay model is given by:
[tex]y = a (1-r)^t[/tex]
Where a the initial amount r the growth factor of rate anf t the time.
The reason with we need to add 1+r in the base of the model is because each period of time [tex]t_1[/tex] we have an increase of the initial amount by a factor of (1+r) so after n periods we will have (1+r)^n times the initial amount.
