The equation y = 400(1.03)x is an example of

The equation y = 400(1.03)x is an example of an exponential growth function.

To understand why it is an exponential growth function, let's break down the equation:

- y represents the dependent variable, which is the quantity that is changing. In this case, it represents the final amount.
- 400 represents the initial amount or starting value.
- 1.03 is the growth factor or the multiplier. It determines how much the quantity will increase each time.
- x represents the independent variable, which is typically time or the number of periods.

Here's how to interpret the equation:

- As x increases, the value of y will grow at an exponential rate.
- The growth factor 1.03 indicates that the quantity will increase by 3% each time x increases by 1 unit.
- The initial amount of 400 suggests that when x = 0, the value of y will be 400.

Therefore, the equation y = 400(1.03)x describes exponential growth because the quantity y increases exponentially with each increase in x.