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 4.04Complete the statement.


(1 point)
The scenario is best represented by (a geometic sequence or a an exponential function)
(sorry I have a panic attack so I cant spell very well at the moment)

Answer 1

The scenario is best represented by an exponential function.

This is because the total revenue grows by a constant percentage (28%) each year, which is characteristic of exponential growth. In contrast, a geometric sequence involves a factor being multiplied to obtain each term, but in this context, it's more accurately described as exponential growth because the increase is based on the entire previous year's revenue.