Question

Jason wants to buy a new HD television but he thinks that if he waits the quality of HD television to improve the television wants to buy cost 2500 now and based on price, Jason thinks that the price will increase continuously by 4% each year. A) write an exponential growth equation to represent the price of Y of a new HD Television T from now

Answer 1

To increase by 4% the original price, we have to mulitply by 1.04

For the first year, the price would be:

`\begin{gathered} 2500\cdot1.04 \\ \rightarrow2500\cdot1.04^1 \end{gathered}`

For the second year, the price would be:

`\begin{gathered} 2500\cdot1.04\cdot1.04 \\ \rightarrow2500\cdot1.04^2 \end{gathered}`

Fo the third,

`\begin{gathered} 2500\cdot1.04\cdot1.04\cdot1.04 \\ \rightarrow2500\cdot1.04^3 \end{gathered}`

For the x-th year,

`2500\cdot1.04^x`

Therefore, the function that represents the exponential growth of the price is:

`y=2500\cdot1.04^x`