1. What is Growth/Decay Factor?

The growth/decay factor represents the multiplier applied per time period in exponential growth or decay scenarios. It quantifies how much a quantity increases (growth) or decreases (decay) over multiple time periods.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( r \) — Rate per period (0 to 1)
• \( t \) — Number of time periods

Explanation: The formula calculates the cumulative effect of applying the same growth or decay rate over multiple time periods.

3. Importance of Factor Calculation

Details: Growth/decay factors are essential in finance (compound interest), population studies, radioactive decay, and any scenario involving exponential change over time.

4. Using the Calculator

Tips: Enter the rate as a decimal between 0 and 1 (e.g., 0.05 for 5%), time periods as positive numbers, and select growth or decay type.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between growth and decay?
A: Growth involves increasing values (1 + r), while decay involves decreasing values (1 - r) over time.

Q2: Can the rate be greater than 1?
A: No, the rate should be between 0 and 1 (0% to 100%) for meaningful results.

Q3: How is this different from simple interest?
A: This calculates compound growth/decay where each period's change is based on the current value, not just the original amount.

Q4: What if time is not an integer?
A: The calculator handles fractional time periods, useful for partial periods or continuous calculations.

Q5: Can this be used for negative rates?
A: Negative rates would indicate decay, so use the decay option with positive rate values instead.