Set 7: Exponential Functions (Intermediate)

Choice C is correct. Choice C is the correct answer. Convert small percentage to decimal carefully. 1. Identify Rate: $r = 0.5\% = 0.005$. 2. Calculate Factor: $b = 1 + r = 1 + 0.005 = 1.005$. Strategic Tip: Move the decimal point two places left for percentage. $0.5\to 0.005$. Choice A is incorrect because it represents 50%. Choice B is incorrect because it represents 5%.