Question each-y
Each year, the value of an investment increases by of its value the previous year. Which of the following functions best models how the value of the investment changes over time?
Decreasing exponential
Decreasing linear
Increasing exponential
Increasing linear
Each year, the value of an investment increases by 0.49 % of its value the previous
Hard-difficulty · SAT Math · Nonlinear Functions — Exponential growth and decay functions. Read the question above, select your answer, and check the full explanation below to understand exactly why the correct choice works.
Answer explanation
Choice C is correct. Because the value of the investment increases each year, the function that best models how the value of the investment changes over time is an increasing function. It′s given that each year, the value of the investment increases by of its value the previous year. Since the value of the investment changes by a fixed percentage each year, the function that best models how the value of the investment changes over time is an exponential function. Therefore, the function that best models how the value of the investment changes over time is an increasing exponential function.
Choice A is incorrect and may result from conceptual errors.
Choice B is incorrect and may result from conceptual errors.
Choice D is incorrect and may result from conceptual errors.
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