Determine whether the function represents exponential growth or \( y=(1.06)^{8 t} \) Exponential growth Expontial decay The rate of change is 6 Listen
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The function \( y = (1.06)^{8t} \) shows exponential growth because the base (1.06) is greater than 1. This means that as \( t \) increases, the value of \( y \) will also increase rapidly, reflecting a growth pattern. The coefficient 8 in the exponent indicates that the growth is accelerated by a factor of 8 for each time unit. Exponential growth occurs in many real-world situations, such as population increase, compound interest in finance, and even the spread of viruses. For example, with banking, if you invest money at an interest rate of 6%, your investment grows exponentially as interest is calculated on the principal amount as well as on the accumulated interest from previous periods, leading to a larger amount over time.