Question

Leo is helping his grandfather sell his car. They found a website that used factors such as the car's average annual mileage, how the car was maintained, and the rarity of the car to determine the car's value. The website uses the following expression to model the car's value, in dollars, after x years.

11,150(1.04)^x


A.
The value of the car is expected to increase by 4% each year.
B.
The value of the car is expected to increase by 104% each year.
C.
The value of the car is expected to decrease by 96% each year.
D.
The value of the car is expected to decrease by 4% each year.

Answer 1

Leo is helping his grandfather sell his car. They found a website that used factors such as the car's average annual mileage, how the car was maintained, and the rarity of the car to determine the car's value. The website uses the following expression to model the car's value, in dollars, after x years.

Explanation:

Answer 2

Given equation is :

11,150(1.04)^x - x is years

According to this equation the correct answer is option A.

The value of the car is expected to increase by 4% each year.

1.04 is found by 1+(4/100)

But technically the car's value should decrease but the expression says the value increased.