Understanding Growth and Decay Rates

The video tutorial explains how to determine the growth or decay rate of functions using a specific formula. It covers the general format of growth and decay functions, how to identify the initial amount, and how to calculate the rate. The tutorial provides examples to illustrate both growth and decay scenarios, emphasizing the importance of converting rates to percentages and understanding the implications of positive and negative rates.

What is the general formula for a growth or decay function?

• Final amount = Initial amount * (1 + R)^T

• Final amount = Initial amount + R

• Final amount = Initial amount * R^T

• Final amount = Initial amount / (1 + R)^T

In the formula for growth or decay, what does 'R' represent?

• The final amount

• The initial amount

• The growth or decay rate

• The number of periods

If the value of 'R' is positive, what does it indicate?

• No change

• A constant rate

• A growth rate

• A decay rate

How do you convert a decimal growth rate to a percentage?

• Divide by 100

• Multiply by 100

• Add 100

• Subtract 100

What is the growth rate if 1 + R equals 4?

• 200%

• 100%

• 400%

• 300%

What mistake do students often make when calculating growth rates for doubling?

• They think doubling means a 200% growth rate

• They use the wrong initial amount

• They forget to multiply by 100

• They subtract 1 instead of adding

If 1 + R equals 0.75, what is the decay rate?

• Negative 33.33%

• 33.33%

• Negative 25%

• 25%

What is the decay rate if 1 + R equals 2/3?

• 33.33%

• 25%

• Negative 25%

• Negative 33.33%

What does a negative 'R' value indicate?

• A constant rate

• A decay rate

• No change

• A growth rate

What should you always do when calculating growth or decay rates?

• Add 1 to the rate

• Subtract 1 from the rate

• Divide the rate by 10

• Multiply the rate by 10