Answer:
A) The price of product A is increasing by 3% per year.
(B) The product A recorded a greater percentage change in price over the previous year.
Step-by-step explanation:
(A)
The function representing the price, in dollars, of product A after x years is:
FA(x)=0.69*(1.03)x
The function FA(x)can be written as:
FA(x)=0.69*1+(0.03)x
The function FA(x) is similar to the exponential growth function, y=a(1+r)x .
Here r is the growth rate.
Thus, it can be said that the price of product A is increasing by 3% per year.
(B)
Consider the data of product B for the year 3 and 4.
The price of product B for year 3 and 4 are 10,303.01 and 10,406.04.
Compute the percent price change from year 3 to 4 as follows:
10406.04-10303.01/10303.01*100
which is 0.999%
~1%
The price of product B is increasing by 1% per year.
Thus, the product A recorded a greater percentage change in price over the previous year.
