Exploring Exponential Growth and Decay Functions

What does the variable 'A' typically represent in exponential functions?

• Initial amount or principal

• Rate of growth or decay

• Time in years

• None of the above

If an exponential function's rate is expressed as 25%, how should it be written as a decimal?

• 2.5

• 25

• 0.025

• 0.25

What does a negative 'A' value indicate in the graph of an exponential function?

• The function has no y-intercept

• There is no growth or decay

• The graph is reflected and goes downwards

• The rate is negative

In exponential growth, what does the function's base being greater than 1 indicate?

• The function will increase

• The function will decrease

• The function will oscillate

• The function will remain constant

How is the y-intercept determined in an exponential graph?

• By the rate of growth or decay

• By the value of 'A'

• By the time period

• By the value of 'R'

What does a base less than 1 in an exponential function typically indicate?

• Growth

• Oscillation

• Decay

• No change

How do you calculate the percentage of growth or decay?

• None of the above

• Multiply the base by 100

• Add 1 to the base and convert to percentage

• Subtract 1 from the base and convert to percentage

What does 'compounded quarterly' mean in terms of compound interest?

• Compounded daily

• Compounded 4 times a year

• Compounded annually

• Compounded 12 times a year

If the interest rate is 0.0881, how should it be written for calculations in compound interest?

• 0.00881

• 8.81

• 0.0881

• 88.1

What is the effect of a higher compounding frequency on the final amount in compound interest?

• Reduces the interest rate

• No effect on the final amount

• Increases the final amount

• Decreases the final amount