Question

The price of gold has increased by 35% per year from 2000. In the year 2000, Harry bought a gold ring for $590. Which of the following function f(x) can be used to represent the price of the ring x years after 2000?
A. f(x) = 590(1.35)^x
B. f(x) = 590(0.65)^x
C. f(x) = 35(0.41)^x
D. f(x) = 35(1.59)^x

Answer 1

The correct choice is A. When something is being increased by a percentage, you add the percentage to 100%, so you add 35% to 100% to make a decimal of 1.35.  Every year the initial value of 590 will be increased by 35%. so the correct choice is A.