7. When Luis opened a mechanics shop, his total revenue, in thousands of dollars, was 2.1 in his first year. Each following year, his rate of growth of the total revenue has been 28%. Some of the revenue data for his shop is shown in the table.

Question

Year 1 2 3 4
Total Revenue

(In Thousands of Dollars)

2.1 2.688 3.44 4.04
Complete the statement.


(1 point)
The scenario is best represented by
an geometric sequence
an exponential function

Answer 1

The scenario is best represented by an exponential function.

This is because the revenue grows at a constant percentage (28% each year), which is characteristic of exponential growth rather than a constant difference, which would represent a geometric sequence.