To determine the percent rate of change in the function y = 0.96x, we need to examine the base of the exponential function. In this case, the base is 0.96.
The percent rate of change can be found using the formula:
Percent Rate of Change = (b – 1) × 100%
where b is the base of the exponential function.
Plugging in our base:
Percent Rate of Change = (0.96 – 1) × 100% = -0.04 × 100% = -4%
This negative value indicates that the function is decreasing.
Now, to determine whether the function represents exponential growth or decay, we look at the base. If the base is greater than 1, it represents exponential growth. If the base is less than 1 (but greater than 0), it represents exponential decay.
Since our base is 0.96, which is less than 1, we can conclude that y = 0.96x represents exponential decay.