Using the Following Table of a Function That Models Exponential

question 46

Multiple Choice

Using the following table of a function that models exponential growth determine the one-year growth factor (rounded to the nearest hundredth) .

• A) 1.32
• B) 1.75
• C) 0.87
• D) 1.15
• E) 0.76

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Definitions:

Compounded Quarterly

The method of calculating interest where the accumulated interest is added to the principal amount after each quarter.

Future Value

The worth of a current asset on a certain future date, calculated by presuming a specific growth rate over a period.

Deposit Today

An amount of money placed into a financial account or investment at the present time.