Given:
The given equation is
[tex]60=5(1.07)^x[/tex]
To find:
The initial value and growth/decay factor.
Solution:
The general exponential growth/decay model is
[tex]y=a(1+r)^x[/tex] ...(i)
where, a is initial value, if r>0, then |r| is growth factor, if r<0, then |r| is decay factor and x is time.
We have,
[tex]60=5(1.07)^x[/tex]
It can be written as
[tex]60=5(1+0.07)^x[/tex] ...(ii)
On comparing (i) and (ii), we get
[tex]a=5\text{ and }r=0.07[/tex]
Here, initial value is 5 and growth factor is 0.07, i.e., 7%.
Therefore, the correct option for first question is d and correct option for second question is a.
