Use exponent properties to interpret exponential expressions, including percent growth and decay.
Interpret the base of an exponential growth model as a percent increase
Problem
For the growth model \(P(t)=500(1.06)^t\), what does the base tell you about the percent increase each interval?
Big Picture
What this problem is really about
An exponential growth base combines the retained whole with the added fraction. We’ll identify the repeated multiplier, subtract one to isolate only the gain, convert that decimal to percent, and attach the rate to one exponent interval.
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