# How do you determine if the equation #y=0.25(1.03)^5# represents exponential growth or decay?

##### 1 Answer

Jul 6, 2017

If b in

#### Explanation:

In general, assuming if the exponent is positive, as long as the inner number is greater than 1, it will grow exponentially. To put this differently:

Assume an exponential function

In the case of

I am assuming in this case that 5 is a placeholder for x or whatever variable it is supposed to represent.