Step-by-step explanation:
an exponential growth/decay function is built the Goering way :
v(t) = initial value × (1 + growth rate)^t
as every time period the previous value is multiplied by (1 + growth rate). if the growth rate is positive, we have a true growth, and the values get larger and larger.
if the growth rate is negative, we have decay.
and this is the strange thing here : the value of a car is usually determined over time by decay. and not by growth as indicated here.
so, the initial value was $26,000
as 1.14 > 1, it means that the growth rate is positive (0.14), and we have growth here.
the growth (rate) is 14% (0.14 × 100) each year.
