Question

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?

Answer 1

B. 4% every year

Explanation:

Answer 2

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%