The price of products may increase due to inflation and decrease due to depreciation. Derek is studying the change in the price of two products, A and B, over time. The price f(x), in dollars, of product A after x years is represented by the function below:
f(x) = 0.69(1.03)x
Part A: Is the price of product A increasing or decreasing and by what percentage per year? Justify your answer. (5 points)
Part B: The table below shows the price f(t), in dollars, of product B after t years:
t (number of years)
1 2 3 4
f(t) (price in dollars)
10,100 10,201 10,303.01 10,406.04
Which product recorded a greater percentage change in price over the previous year? Justify your answer. (5 points)
1 answer:
A: increasing by 3 percent each year- starting with the whole (100%) and adding 3 more b. year 2 showed the most growth to year 3. 10303.1/10201= 1.0100088
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