Question

At the beginning of the year, the number of books owned by a library was 10,000. Since then, it has grown by 1% each month.

Which expressions represent the number of books, in thousands, owned by the library 5 years later if it continues to grow at that rate?

A) 10x ((1+0.01)^12)^5

B) 10x(1+0.01^12) ^60

C) 10x (1.01)^5

D) 10x(1.01)^60

E) 10x (0.01)^60
.

Answer 1

The answer is a, when you are trying to find an exponential rate, you have the starting amount in the front, outside of the parentheses, you then subtract or add the percentage whether it is increasing or decreasing. You then take the amount of times and use it as your power outside of the parentheses. Since it says 1% each month, you have to multiply the growth rate by 12.