Question

The value of a diamond ring increases at a constant rate. After 2 years, the value of the ring is $1500. After 3 more years, the value of the ring is $2025.

a. Write an equation that represents the value y (in dollars) of the ring after x years.
b. Interpret the y-intercept of the graph of the equation.
c. What is the constant rate of increase in the value of the ring?
d. Would you expect this constant rate to continue forever? Explain.

Answer 1

The equation that represents the value y (in dollars) of the ring after x years is y = 500x + 1000. b. The y-intercept of the graph of the equation is 1000, which is the initial value of the ring. c. The constant rate of increase in the value of the ring is 500 dollars per year. d. The constant rate of increase in the value of the ring is not expected to continue forever. As the value of the ring increases, the rate of increase will likely slow down as it approaches its maximum value.

Explanation: