Set 12: Exponential Functions (Advanced)

Choice A is correct. Choice A is the correct answer. Extract the rate from the growth factor. 1. Identify Factor: $b = 1.06$. 2. Compare to 1: $1.06= 1 + 0.06$. 3. Convert: $0.06= 6\%$. Strategic Tip: The decimal part after the 1 is your percentage growth. Choice B is incorrect because 106% growth would mean $b=2.06$. Choice C is incorrect because $b > 1$ implies growth, not decay. Choice D is incorrect because 0.06% would be $b=1.0006$.