Question

The price of gold has increased by 35% per year from 2000. In the year 2000, Harry 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?

f(x) = 590(1.35)x
f(x) = 590(0.65)x
f(x) = 35(0.41)x
f(x) = 35(1.59)x

Answer 1

The answer is:
f(x) = 590(1.35)x

Answer 2

Answer:
`f(x) = 590(1.35)^x`

Explanation:

The exponential equation for growth in time period t is given by :-

`f(x)=A(1+r)^t`, where A is the initial value and r is the rate of growth in decimal.

Given : Rate of growth : r=35% = 0.35

Initial value : A = $590

Now, the functions f(x) can be used to represent the price of the ring x years after 2000 is given by :-

`f(x)=590(1+0.35)^x\\\\ f(x)=590(1.35)^x`