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Create Free AccountAn exponential function has the form f(x) = a·b^x, where a is the initial value and b is the growth/decay factor. If b > 1, it's growth. If 0 < b < 1, it's decay. The variable is in the exponent, unlike linear or quadratic functions.
For growth: add the percent to 100% and convert to decimal. 5% growth → 1.05. For decay: subtract from 100%. 5% decay → 0.95. The growth factor b = 1 + r for growth and b = 1 - r for decay, where r is the rate as a decimal.