Answer:
The correct option is 1. The function shows the exponential growth of 7%.
Step-by-step explanation:
The given function is
[tex]f(x)=(1.07)^x[/tex]
The exponential model is defined as
[tex]f(x)=C(1+r)^t[/tex]
Where, the initial value is C, r is growth rate, (1+r) is growth factor and t is time. If r<0, then it represents the decay of r%.
Rewrite the given function.
[tex]f(x)=(1+0.07)^x[/tex]
The value of r is 0.07, which is a positive value.
Therefore the growth rate is 7% and option 1 is correct.
