ACT Preparation / Unit 12 ACT 1103 short lesson, about 20 seconds
Growth Factor and Growth Rate
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The idea
The base b is the growth factor; the growth rate is b − 1. A 5% growth rate is a growth factor of 1.05, and a 5% decay rate is a factor of 0.95.
In practice
Sales rising 8% a year: S = S₀(1.08)ᵗ.
Where people slip
Use the factor, not the rate: multiplying by 0.08 would shrink sales to 8% of their size.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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