Question

determine what type of model best fits the given situation: The value of a classic car is presently $50,000 and is increasing in value by 5% per year. A. exponential B. linear C. quadratic D. none of these

Answer 1

It is exponential, axb^x. 50000x1.05 to the power of the number of years x

Answer 2

The model that best fits the given situation is:

A. exponential

Explanation:

Exponential function--

A function which is given by the expression:

`f(x)=ab^x`

is said to be a exponential function where a is the initial value and b is the change in the function.

such that the function is decreasing by a rate r% then,

b=1-r and the function is a exponential decay function.

and if the function is increasing by a rate r% then,

b=1+r and the function is a exponential growth function.

Here,

The value of a classic car is presently $50,000 and is increasing in value by 5% per year.

i.e. a=50,000 and r=5%

and the function is increasing.

i.e.

b=1+5%

i.e.

b=1+0.05=1.05

Hence, the function that describes this situation is given by:

`f(x)=50000(1.05)^x`