Question

the equation $f(x) = 300(1.06)^x$ is being used to calculate the amount of money in a savings account. what does the 1.06 represent? 6% decay; 1.06% growth; .06% decay; 6% growth

Explanation:

The given function $f(x) = 300(1.06)^x$ follows the exponential growth form $f(x)=a(1+r)^x$, where $1+r$ is the growth factor. Here, $1+r=1.06$, so $r=0.06$ which is a 6% positive growth rate (not decay, since the factor is greater than 1).

Answer:

D. 6% growth