The exponential function is illustrated below.
An exponential function has a growth factor or 3.76. What is the percentage growth rate?
The growth factor (b) is given as:
b = 3.76
So, the percentage growth rate (r) is calculated as:
r = b - 1
Substitute known values
r = 3.76 - 1
Evaluate the difference
r = 276%
The way to solve Financial Problems using Sequences & Series will be:
The first salary that Mr James earn is 10000 and there is a yearly increase of 2000. Find his salary in the 5th year. This will be:
= a + (n - 1)d
= 1000 + (5 - 1)2000
= 10000 + (4 × 2000)
= 10000 + 8000.
= 18000
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