we have the exponential function
Part A
The initial value is $25,900
Part B
The function represents a growth function because the base of the exponential function
b=1.12 is greater than 1.
Part C
we have that
b=1+r
b=1.12
so
1.12=1+r
r=1.12-1
r=0.12
Convert to percentage
0.12*100=12%
the rate is 12%