Final answer:
The given function f(x) = (1 + 0.05)^x is an example of an exponential growth function because the base of the exponent, (1 + 0.05), is greater than 1.
Step-by-step explanation:
The function f(x) = (1 + 0.05)x would be a classic example of an exponential growth function. In the given expression, (1 + 0.05) is the growth factor, which is greater than 1, indicating that the function will indeed grow exponentially as x increases. If the function had a factor less than 1 (e.g., (1 - 0.05)x), it would represent exponential decay. Exponential growth is characterized by its rapid increase over time and is often depicted as a curve that steepens continuously, which is in contrast to linear, quadratic, or logistic growth patterns.