Interpret parameters in linear and exponential functions in context.
Convert an exponential base to percent change
Problem
An exponential model has base \(1.18\). What percent increase or decrease does that represent?
Big Picture
What this problem is really about
A base above one represents the entire retained amount plus a growth portion, so the base itself is not the percent increase. We’ll compare the factor with one, subtract the retained whole, and convert the remaining decimal to a percentage. Recombining the original hundred percent with that increase will check the interpretation.
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