The monthly revenue of the business grows by 8%, monthly
An exponential function is any function that has its constant raised to the power of an argument.
An exponential function is represented as:
[tex]y = ab^x[/tex]
Where:
From the table we have the following ordered pair
(x,y) = {(0,72000) (3,90000)}
So, we have:
[tex]90000 =72000 \times b^3[/tex]
Divide both sides by 72000
[tex]1.25 = b^3[/tex]
Take the cube roots of both sides
[tex]b=\sqrt[3]{1.25}[/tex]
[tex]b=1.08[/tex]
Recall that:
[tex]b = 1+r[/tex]
So, we have:
[tex]1+r = 1.08[/tex]
Subtract 1 from both sides
[tex]r = 0.08[/tex]
Express as percentage
[tex]r = 8\%[/tex]
Hence, the monthly revenue of the business grows by 8%, monthly
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