Given:
The given equation is
To find:
The initial value and growth/decay factor.
Solution:
The general exponential growth/decay model is
...(i)
where, a is initial value, if r>0, then |r| is growth factor, if r<0, then |r| is decay factor and x is time.
We have,
It can be written as
...(ii)
On comparing (i) and (ii), we get
Here, initial value is 5 and growth factor is 0.07, i.e., 7%.
Therefore, the correct option for first question is d and correct option for second question is a.