Question

The expression 1.5 x 1.09^t models the housing costs, in thousands of dollars, for summer term t years since Chinedu applied to his college. What does 1.09 represent in this expression?

Answer 1

The summer housing costs increase by 9%, percent each year.

Explanation:

that is the correct answer

Answer 2

The expression 1.5 x 1.09^t models the housing costs, in thousands of dollars, for summer term t years since Chinedu applied to his college.

Now In general we have the following rule for exponential functions:

`y=ab^(x)`

Here we have two cases for b:

Case 1: if b<1 , we call it as exponential decay.

Case 2: if b>1 , we call it as exponential growth.

Now let us compare our equation with this general form,

1.5 x 1.09^t

Here b is 1.09, which is greater than 1.

So here we can say that the housing cost is increasing exponentially by a factor or 1.09.