If the price level increased from 200 to 250, then what was the inflation rate?
2 answers:
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The model that best fits the given situation is exponential
<h3>what is an Exponential Function?</h3>Exponential function, in mathematics a relationship of the form y = , where the independent variable x extends over the entire real number line as an exponent of a positive number a. The most important exponential function is y =
.
Here,
The value of a classic car = $50,000
It is increasing in value by 5% per year.
So, here we have a = 50,000 and x = 5%
The function is increasing.
b = 1+5%
b = 1+0.05 = 1.05
Hence, the function that describes this situation is given by:
To learn more about Exponential Function from the given link
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