Question

What does the constant 1.095 reveal about the rate of change of the quantity?

Answer 1

We can assume that there are 30 days per month.

Notice that an exponential function is as follows:

`g(x)=a(1+b)^(kx),`

where a is the initial value, b is the rate of change as a decimal number, and k is a constant.

If b>0, then g(x) represents exponential growth.

Notice that:

`1.095=1+0.095.`

Therefore the function is growing exponentially at a rate of 0.095 every day.

Answer:

`\text{ The function is growing exponentially at a rate of 9.5\% every day.}`