When the growth factor is exactly 1, meaning the growth rate, 

, is equal to 0, the final amount and initial amount are the same. This video explains why.

What Does the Final Amount Look like When the Growth Factor Is Equal to 1?

A growth factor helps you calculate a final amount after a percentage has been added or subtracted. It is given by the formula:

 is the decimal representation of the percentage that is being added or subtracted.

Indicates the percentage increase or decrease between the initial and final amounts. Also known as growth rate.

The starting amount, before a percentage increase or decrease

The amount after you have included the percentage increase or decrease. It is given by the formula:

Mathagon

Growth Factor

Growth Factor for an Increase

Decay Factor

Decay Factor for a Decrease

Growth Factor Equal to 1

Finding the Initial Amount 

Finding a Percentage Increase

Finding a Percentage Decrease

Increasing by the Same Percentage Multiple Times

Decreasing by the Same Percentage Multiple Times

Growth Factors

When the growth factor is exactly 1, meaning the growth rate, r, is equal to 0, the final amount and initial amount are the same. This video explains why. 