Another common trend in continuous data patterns is exponential growth, which is also commonly seen as exponential decay. In exponential growth, a future value is proportionally related to the current value. The general formula for this type of growth can be written as:
y = y0 (1 + r) x
Where y0 is the quantity's initial value (when x = 0), and r is the growth rate of the quantity.
For instance, if you are investing money in the stock market and expect a 5% rate of return per year (r = 0.05) with an initial investment of $10,000, after five years you can expect $12,763. The exponential growth formula applies here because the amount of money you have next year is proportionally related to the amount of money ...
