# How do you determine if the equation y = 50(0.03)^x  represents exponential growth or decay?

Apr 12, 2018

It would be an exponential decay

#### Explanation:

graph{50(0.03)^x [-10, 10, -5, 5]}
An exponential growth is created if the equation's multiplier is greater than 1

An exponential decay is created if the equation's multiplier is less than 1

An exponential equation is in the form ab^x, in which b is the multiplier

If we look at the b value of 50(0.03)^x, we can see that it's less than 1 so therefore, it's an exponential decay