Question

Robin purchased a piece of land in the year 2000 for $15,000. The value of the land increases at the rate of 13.17% each year. Identify the function that represents the value of the land. Does the function represent growth, or decay?
A) V(t) = 15000(0.8683)t; growth
B) V(t) = 15000(1.1317)t; decay
C) V(t) = 15000(0.08683)t; decay
D) V(t) = 15000(1.1317)t; growth

Answer 1

The value of the land increases by 13.17% each year So it's growth function which is V (t)=15000 (1+r)^t Where r is the growth rate which is in decimal 13.17/100=0.1317 So it's D) V(t) = 15000(1.1317)t; growth