# How do you determine if the equation y = 0.84(0.94)^x represents exponential growth or decay?

Mar 3, 2016

#### Explanation:

Recall that the general equation for an exponential equation is:

$y = a {\left(b\right)}^{x}$

where:
$a =$vertical stretch/compression
$b =$base
$x =$exponent

If $b > 1$, there is exponential growth.
If $0$$<$$b$ $< 1$, there is exponential decay.

In your case, since $b = 0.94$ and is less than $1$, the function represents exponential decay, regardless of the value of $a$.