Question

A function is shown below: f(x) = (1.07)x what does the function represent? exponential growth of 7% exponential decay of 7% exponential growth of 93%

Answer 1

I guess your function should be written this way: f(x) = 1.07ˣ , if so then:

This is an exponential function of the form aˣ, since a>0 (a=1.07) the function is growing for all value of x>0 at the rate of 7%

Answer 2

The correct option is 1. The function shows the exponential growth of 7%.

Explanation:

The given function is

`f(x)=(1.07)^x`

The exponential model is defined as

`f(x)=C(1+r)^t`

Where, the initial value is C, r is growth rate, (1+r) is growth factor and t is time. If r<0, then it represents the decay of r%.

Rewrite the given function.

`f(x)=(1+0.07)^x`

The value of r is 0.07, which is a positive value.

Therefore the growth rate is 7% and option 1 is correct.