Plot and Label the Given Points $\mathrm { Q } = \mathrm { Q } _ { 0 } \times ( 1 + \mathrm { r } ) ^ { \mathrm { t } }$

question 32

Multiple Choice

Plot and label the given points.
-The population of a town with an initial population of 68,555 grows at a rate of 3.8% per year. Create an exponential function of the form Q
$\mathrm { Q } = \mathrm { Q } _ { 0 } \times ( 1 + \mathrm { r } ) ^ { \mathrm { t } }$

• A) \(Q = 68,555 \times ( 0.962 ) ^ { t }\)
• B) \(Q = 68,555 \times ( 1.038 ) ^ { t }\)
• C) \(Q = 68,555 \times ( 4.8 ) ^ { t }\)
• D) \(Q = 68,555 \times ( 0.924 ) ^ { t }\)

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Definitions:

Constant Growth Model

A method to estimate the value of a stock by assuming a constant rate of dividend growth.

Required Return

The expected return that investors demand for investing in a security or a portfolio.

Cash Flows

The sum of funds flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Selling Price

The cost at which a service or item is sold to purchasers.