Set 1: Exponential Functions (Intermediate)

Choice B is correct. Choice B is the correct answer. The rate is found from the factor $b = 1+r$. 1. Identify Factor: $b = 1.07$. 2. Solve for r: $1+ r = 1.07 \implies r = 0.07$. 3. Convert: $0.07= 7\%$. Strategic Tip: Subtract 1 from the base to get the rate as a decimal. Choice A is incorrect because it confuses the decimal with the percentage. Choice C is incorrect because 107% would mean $b=2.07$. Choice D is incorrect because 0.07% is 0.$0007$.