ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You can also calculate exponential growth using the formula f(x) = a(1 + r)x, where: The f(x) term represents the function. The a variable stands for the beginning value of your data. The r variable represents the growth rate.

Detailed explanation-2: -In an exponential function, increasing $x$ by 1 causes a change in $y$ by the same factor, called the growth rate. To get the next $y$, take the previous $y$ and multiply by 2. In a linear function, the rate of change is constant. In an exponential function the rate of change is proportional to the $y$-value.

Detailed explanation-3: -The form P(t) = P0ekt is sometimes called the continuous exponential model. The constant k is called the continuous growth (or decay) rate. In the form P(t) = P0bt, the growth rate is r = b − 1. The constant b is sometimes called the growth factor.