For an increase of percentage, it is a growth factor.
For a decrease of percentage, it is a decay factor.
The growth factor is = (1+r)
The decay factor is= (1-r)
As it is increase of 1%, it is a growth factor.
Here the rate of increase is 1% = 1/100 = 0.01
Hence the growth factor is 1 + 0.01 = 1.01
The growth factor corresponding to 1% increase is 1.01.
