The true statement is (c) the value of a is the initial amount, and b is equal to the growth factor (1+r).
The functions are given as:
f(x) = a(1 + r)^x
f(x) = a * b^x
An exponential growth function is represented as:
y = ab^x
Where
By comparison:
b = 1 + r
Hence, the true statement is (c) the value of a is the initial amount, and b is equal to the growth factor (1+r).
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