Answer
The function represents exponential growth and the rate of growth is $26\%$.
Work Step by Step
The given function is
$\Rightarrow f(t)=\frac{1}{3}(1.26)^t$
$\Rightarrow f(t)=\frac{1}{3}(1+0.26)^t$
The function is of the form
$y=a(1+r)^t$, where $1+r>1$.
So, it represents exponential growth.
Growth factor is
$\Rightarrow 1+r=1.26$
Subtract $1$ from each side.
$\Rightarrow 1+r-1=1.26-1$
Simplify.
$\Rightarrow r=0.26$
$\Rightarrow r=26\%$.
Hence, the function represents exponential growth and the rate of growth is $26\%$.