Question

Product A

can be represented by the function f(x) = 0.69(1.03)x



product B
years : price in dollars
1 : 10,100
2 : 10,201
3 : 10,303.01
4 : 10,406.04


Which product recorded a greater percentage change in price over the previous year?

Answer 1

f(x) = 0.69 (1.03)^x

in other words TO THE POWER x

that would be 0.69 when x = 0 years, now

0.69 * 1.03 after one year

0.69 * 1.03 *1.03 after two years

0.69 *1.03*1.03*1.03 after 3 etc

It is getting bigger. Every year you increase by .03 x which is 3%

B

the ratio is for example

10406.04/10303.01

= 1.01

check:

10303.01/10201 = 1.01 sure enough

so that is increasing by ONLY ONE percent per year