Algebra 1 · Exponential Functions & Data

Growth Factor

Algebra 1 · Exponential Functions & Data

Definition

The growth factor is the constant multiplier b in an exponential function; a 5% increase has growth factor 1.05.

Examples

  • A 5% increase has growth factor 1 + 0.05 = 1.05.
  • A 10% increase has growth factor 1.10.

Key rule

Add the rate to 1 to find the growth factor.

Memory hook

Growth factor = 1 plus the rate.