What is the correct match?

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1 Answer
Dec 18, 2017

y=A(1-r)^t is exponential decay and y=A(1+r)^t is exponential growth.

Explanation:

It depends strongly on context. To make it meaningful, I assume that y is a function of t and A,r are some constants, where 0< r<1.
When you exponentiate number bigger than 1 you get exponential growth and when the number is less than 1 you get decay. That's why r>0 part is important. If r<0 the answers would swap.

If r=0 you get old boring constant functions.

If r>1 then 1-r<0 and when you exponentiate negative numbers bad things would happen (if you don't know complex numbers).
Exponentiating 0 is only half-ok. You get 0 for positive t, and whole thing explodes for negative t.

Further interpretations could suggest that t is time and A is initial value of for example light intensity, electrical current, number of microbes, number of radioactive atoms, money etc.

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