Monthly rent at Lake View Apartments has increased annually and is modeled by the exponential equation y = 2,400(1.04)x. What is the percent increase per year?

Question

asked Dec 5, 2020 60.9k views

2 Answers

Markive · Answer 1 · 2020-12-10T02:46:06+0000

Answer:

The percent increase per year is 4%

Explanation:

we have

y=2,400(1.04^x)

This is a exponential function of the form

y=a(b^x)

where

y represent the monthly rent at Lake View Apartments

x represent the number of years

a is the initial value (y-intercept)

b is the base

r is the rate or percent increase

b=(1+r)

The percent increase per year is the base of the exponential function decreased by 1.

so

r=b-1

In this problem we have

$a=\$2,400$ ---> initial value

$b=1.04\\r=1.04-1=0.04=4\%$

Therefore

The percent increase per year is 4%