# How do you determine if the equation #y=0.5(1.2)^x # represents exponential growth or decay?

##### 1 Answer

Nov 21, 2017

See explanation.

#### Explanation:

An exponential equation **decreasing** function (represents decay) if:

or

It is an **increasing** function (represents growth) if

or

In the given example

If we look at the above explanation we can say that **increasing** function (represents growth)