Question

Given the exponential function A(x) = P(1 + r)x, what value for r will make the function a growth function?

r = −2.1
r = −0.1
r = 0
r = 2.1

Answer 1

one thing to recall is that, the growth/decay factor, namely the number in the parentheses, if it's greater than 1, is a growth function, if it's less than 1, like 0.9, or 0.6 or such, is decay.

so, any value for "r" that's positive will do to make a growth function.

Answer 2

The value for r that will make the function a growth function is:

r=2.1

Explanation:

We know that the exponential function that represent a growth rate is modeled by the equation of the type:

`A(x)=P(1+r)^x`

where x is the time over which the growth is estimated.

and the value of r is strictly greater than 0.

(

Since if -1<r<0 then the function is a decay function

and if r=0 then there is no change it remain constant )

Hence, the possible value of r is:

r=2.1