Understanding the Growth and Decay Factor: Calculating Increases and Decreases Over Time

Growth/Decay Factor

The growth/decay factor is a mathematical concept used to calculate how a value increases or decreases over time

The growth/decay factor is a mathematical concept used to calculate how a value increases or decreases over time. It is represented as a decimal or a fraction and is often used in exponential growth or decay scenarios.

To calculate the growth factor, you need to determine the ratio of the final value to the initial value. If the value increases over time, the growth factor will be greater than 1. On the other hand, if the value decreases, the growth factor will be less than 1.

The formula for the growth factor is:

Growth Factor = Final Value / Initial Value

For example, let’s say the initial value is 100 and the final value is 200. The growth factor would be:

Growth Factor = 200 / 100 = 2

In this case, the growth factor is 2, indicating that the value has doubled.

Similarly, to calculate the decay factor, you need to determine the ratio of the initial value to the final value. If the value decreases over time, the decay factor will be greater than 1. If the value increases, the decay factor will be less than 1.

The formula for the decay factor is:

Decay Factor = Initial Value / Final Value

For instance, let’s consider an initial value of 200 and a final value of 100. The decay factor would be:

Decay Factor = 200 / 100 = 2

In this case, the decay factor is 2, indicating that the value has decreased by half.

In summary, the growth factor measures how much a value has increased, while the decay factor measures how much a value has decreased. Both factors are calculated by finding the ratio between the final and initial values, with the growth factor indicating an increase when greater than 1 and the decay factor indicating a decrease when greater than 1.

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