Question

The price of gold has increased by 35% per year from 2000 in the year 2000 hairy bought a gold ring for $590 which of the following functions f(x) can be used to represent the price of the ring X years after 2000

Answer 1

Since the price is increasing by percentage, rather than a constant rate, we will be using the exponential equation format, which is y=ab^x (a = initial value, b = growth/decay)

Since the value was $590 in the year 2000, 590 will be our a variable.

Since the value is *increasing* by 35%, add 1 and 0.35 (35% in decimal form) together to get 1.35. 1.35 is going to be your b variable.

Putting our equation together, our equation is f(x) = 590(1.35)^x