# How do you determine if the equation #y=400(1.03)^x# represents exponential growth or decay?

##### 1 Answer

Feb 13, 2016

Growth

#### Explanation:

This is **exponential growth.** Essentially if the power is positive for

Here is a graph of the two situations to help you understand them better:

graph{1.03^x [-63.5, 277.4, -48.3, 122.2]}

graph{1.03^(-x) [-160.4, 151.8, -27.7, 128.5]}

Notice that where