Is the equation A=3500(1.03)^t a model of exponential growth or exponential decay, and what is the rate of change per time period?

Question

exponential growth and 0.03%

exponential growth and 3%

exponential decay and 0.03%

exponential decay and 3%

Answer 1

This equation represents exponential growth, as the base of the exponent (1.03) is greater than 1. The rate of change per time period is 3%, not 0.03%. Therefore, the correct answer is exponential growth and 3%.