Question

Suppose the expression a(b)n models the approximate number of customers who applied for a credit card every month since a bank opened, where a is the initial number of customers who applied, b is the rate of increase in the number of people who applied every month, and n is the number of months since the bank opened.
If the expression below models the number of applicants for a credit card, what is the correct interpretation of the second factor?

Answer 1

We have the following exponential equation:
 y = A (b) ^ n
 Defined the following variables:
 A: is the initial number of customers who applied
 b: is the rate of increase in the number of people who applied every month
 n: is the number of months since the bank opened
 Substituting values we have:
 y = 27 (1.2) ^ 4
 y = 27 * 2.07
 Answer:
 There are 2.07 more people in month 4 than in month 1
 option 3