The function c = 1,300(1.07)^m represents what type of growth as m increases?

• A. Linear growth
• B. Exponential growth
• C. Polynomial growth
• D. Logarithmic growth

Answer: (B)

This form shows exponential growth because the variable appears in the exponent. The function c equals 1300 times (1.07) raised to the power m. Since the base 1.07 is greater than 1, each unit increase in m multiplies c by 1.07, giving a constant percent growth per step and causing the amount to rise faster and faster. For example, when m increases by 1, c is about 7% higher than the previous value, leading to rapid growth as m gets larger. This is distinct from linear growth (a constant amount added each step), polynomial growth (involves powers of m, like m^2), and logarithmic growth (grows slowly, like log m).