This is an example of an exponential equation. They are in the form of y=ab^x, where a is the starting value, b is the rate and x is the number of years.
Our data starts at 2500 and increases by 5%, or 100% + 5% = 1.05.
If you put them together, you have the equation y = 2500(1.05)^x, Choice D.
You can calculate it by divided but most of the people get confused about is it gonna be 12/1.46 or 1.46/12. The correct is 1.46/12 because take the money divided all 12 to get a unit price if you take 12/1.46 which mean divided all ounce can to money and that makes nonsense.
