Recognize constant percent growth or decay as evidence for an exponential model.
Compare exponential models by percent rate
Problem
Compare the exponential models \(f(x)=100(1.08)^x\) and \(g(x)=100(1.05)^x\) by percent rate.
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What this problem is really about
Initial value and percent rate are separate exponential parameters, so matching coefficients do not imply matching growth. We’ll subtract the retained whole from each base, convert the excess decimals to percentages, and compare those like quantities. A one-interval calculation can then confirm which multiplier produces the larger proportional increase.
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