Question

Monthly rent at Lake View Apartments has increased annually and is modeled by the exponential equation y = 2,400(1.04)x. What is the percent increase per year?

Answer 1

Answer:

The percent increase per year is 4%

Step-by-step explanation:

we have

$y=2,400(1.04^x)$

This is a exponential function of the form

$y=a(b^x)$

where

y represent the monthly rent at Lake View Apartments

x represent the number of years

a is the initial value (y-intercept)

b is the base

r is the rate or percent increase

$b=(1+r)$

The percent increase per year is the base of the exponential function decreased by 1.

so

$r=b-1$

In this problem we have

$a=\ 2,400$ ---> initial value

$b=1.04\\r=1.04-1=0.04=4\%$

Therefore

The percent increase per year is 4%