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

##### 1 Answer

Apr 12, 2018

#### Answer:

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