Question

The expression 210,000\left(1.02\right)^x210,000(1.02)

Answer 1

Answer:

The house is increasing in value by 2% each year.

Correct the increase is 1.02 per year the value of b>0 and the percentage of increase each year is:

$\frac{1.02-1}{1} *100 = 2\%$

Step-by-step explanation:

For this case if we have this expression

$210000(1.02)^x$

We have the same functional forma like the exponential model given by:

$y = a b^x$

Where a = 210000 represent the constant or initial value and b = 1.02 represent the base.

So let's analyze the possible options:

The house has a starting value of 1.02.

False the starting value for this case is 210000 since if x=0 then we see that the value is 210000

The house is decreasing in value by 2% each year.

False the increase is 1.02 each year so then in % we have

$\frac{1.02-1}{1} *100 = 2\%$

We  have an increase of 2% each year

The house is increasing in value by 2% each year.

Correct the increase is 1.02 per year the value of b>0 and the percentage of increase each year is:

$\frac{1.02-1}{1} *100 = 2\%$

The value of the house is changing by 0.02% each year.

False the increase is 2% per year