Question

Consider the exponential function

g(x)=190,000•1.03x, which models the value of Evie’s house, where x represents the number of years since she purchased the house.

What is the rate of growth/decay?


a 3%
b 30%
c 103%
d 13%

Answer 1

a 3% (growth)

Explanation:

-An exponential growth/decay function takes the form;

`B=A(1+i)^x`

Where:

`i` is the rate of growth/decay

`A` is the initial quantity

`B` is the final quantity

`x` is time

Given the function
`g(x)=190,000*1.03^x`

g(x) -is the amount at time x

190,000- the initial amount/quantity

1.03=(1+i)

i=1.03-1

i=0.03=3%

Hence, the rate of growth is 3%