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 expontiel function
a geometric sequence

Answer 1

The scenario is best represented by an exponential function.

This is because the total revenue is growing at a constant percentage (28%) each year, which is characteristic of exponential growth. A geometric sequence typically involves a constant factor being multiplied, which is aligned with the concept of exponential functions. In this case, the revenue can be modeled by the function \( R(t) = 2.1 \times (1.28)^{(t-1)} \), where \( R(t) \) is the revenue in year \( t \).