Answer:
1. [tex]y=270000(1.07)^x[/tex]
2. $330,761.61
Step-by-step explanation:
General form of an exponential function: [tex]y=ab^x[/tex]
where:
- a is the y-intercept (or initial value)
- b is the base (or growth factor) in decimal form
- x is the independent variable
If [tex]b > 1[/tex] then it is an increasing function
If [tex]0 < b < 1[/tex] then it is a decreasing function
Also [tex]b\neq 1[/tex]
Given:
- a = $270,000
- b = 1 + 7% = 107% = 107/100 = 1.07
[tex]\implies y=270000(1.07)^x[/tex]
(where [tex]x[/tex] is the number of years, and [tex]y[/tex] is the annual sales in dollars)
When [tex]x=3[/tex]:
[tex]\implies y=270000(1.07)^3[/tex]
[tex]\implies y=330761.61[/tex]
