Repeated multiplication by the same factor is what makes growth or decay exponential, while linear change adds the same amount at each step.
Exponential relationships are usually written as a starting amount times a base raised to the power t: a base greater than one means growth, and a base between zero and one means decay. ACT Mathematics also asks for solutions of equations such as three to the power x equals eighty-one, where writing eighty-one as three to the fourth power gives x equals four.
Answer choices often confuse the growth factor, which is the base, with the percent rate of change.
Sample questions
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Question 1Easier
Derek invests 350 dollars in an account whose balance doubles every 7 years. If no money is added or withdrawn, what is the balance after 21 years?
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Answer: A — 2,800
Twenty-one years contains 3 doubling intervals. The balance is 350(2)3=2,800 dollars.
A quantity is modeled by C(t)=4,200(1.06)t, where t is the number of years. Which of the following describes the annual percent change in the quantity?
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Answer: B — 6% increase
The growth factor 1.06 equals 1+0.06. Therefore, the model represents approximately a 6% increase each year.
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