Step-by-step explanation:
We can determine whether the change represents exponential growth or decay by seeing whether the number being raised to x is between 0 and 1, or greater than 1.
In the equation [tex]y = 540(1.04)^x[/tex], y will increase every time that x increases, as we are multiplying by a number greater than 1 every time.
Hence, this exponential function represents exponential growth.
The percentage rate of increase for this function would be how much the y-value increases each time. Since we are multiplying by 1.04, each time the new value is 104% the original y-value. Hence, the percentage increase is 4%.
