Question

Given the exponential function A(x) = P(1 + r)x, what value for r will make the function a growth function?

r = −2.1
r = −0.1
r = 0
r = 0.1

Answer 1

A(x)=P(1+r)\(^x\) like this ?

Answer 2

yeah

Answer 3

so your rate is 1+r.

Why? because:
P(1+r)\(^1=\)P(1+r)
P(1+r)\(^2=\)P(1+r)(1+r)
P(1+r)\(^3=\)P(1+r)(1+r)(1+r)
P(1+r)\(^4=\)P(1+r)(1+r)(1+r)(1+r)
and so on....

Answer 4

so you always multiply times another 1+r

if 1+r=1, then you multiply just times 1 and value doesn't change,

if 1+r is less than 1, then your value is going to decrease (because if you multiply times 0.6 9/10 or any number smaller than 1) you make the value smaller.

if 1+r is greater than 1, [only] then will your value be growing

Answer 5

So, for what value of r (the value of r in which answer choice), gives you a "1+r" that is GREATER than 1?

Answer 6

ohh so 0.1

Answer 7

Yes, correct
r=0.1 is the answer

Answer 8

thank you so much medal and fan

Answer 9

no need, if you want to I won't refuse xD, but you aren;t required:)

Answer 10

Good work!