Given the function, y = (1.25)^x, determine whether the function represents growth or decay and identify the percentage rate of increase or decrease.
The function y = (1.25)^x represents growth because the base 1.25 is greater than 1.
To determine the percentage rate of increase, we can calculate the difference between the initial value (x=0) and the value at x=1:
1.25^1 = 1.25
To calculate the percentage rate of increase, we first need to find the difference between the initial and final values:
1.25 - 1 = 0.25
Now, we divide this difference by the initial value and multiply by 100 to get the percentage rate of increase:
(0.25/1) * 100 = 25%
So, the function y = (1.25)^x represents a growth rate of 25%.