Question

Samuel took an antique clock that his grandfather had purchased, to be appraised. The appraiser evaluated the current price of the clock to be $400 and stated that the value will continue to increase at 2% per year.
Which of the following graphs shows the value of the antique clock, y, in dollars, after x years?

Answer 1

This is an exponential growth problem. Exponential growth can be expressed mathematically in the following way: 
$y=a (1+r)^{t}$.
Parameter a presents initial amount.
Parameter r is percentage increase. 
Parameter t is time.
An equation that would describe given problem is:
$y=400 (1+0.02)^{t}$
t is the time in years.
I attached the graph of this function.