Recognize constant percent growth or decay as evidence for an exponential model.
Convert percent increase to growth factor
Problem
Identify the growth factor for a constant percent increase of \(5\%\).
Big Picture
What this problem is really about
A growth factor must represent the whole new amount, not just the added portion. We’ll convert the percent increase to a decimal and combine it with the original whole, represented by one. Testing the multiplier on a simple starting amount will confirm that it produces exactly the intended percent increase.
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