Question

A function is shown below:

f(x) = (0.07)x

What does the function represent?
Exponential growth of 7%
Exponential decay of 7%
Exponential growth of 93%
Exponential decay of 93%

Answer 1

Last one:

f(x)= (1+r)^x, then find r=0.07-1=-0.93,

negative---> decay, and then 0.93==93%

Answer 2

Exponential decay of 93%

Explanation:

A function is shown below:

f(x) = (0.07)^x

Exponential formula is

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

r is the rate of growth or decay

From the given f(x) , we have 1+r = 0.07

Subtract 1 from both sides

`r= 0.07 -1`

`r= -0.93`

To get % we multiply by 100

r= -93%

the value of 'r' is negative , so its exponential decay

Exponential decay of 93%