Question

9. A diamond ring was purchased twenty years ago for $500. The value of the

ring increased by 8% each year. Write an exponential function to represent the
value of the ring and solve.
O The function is y = 500(1+.08)20 and the value of the ring is now $2,330
O The function is y = 500 x .08 x 20 and the value of the ring is now $800
The function is y = 500 x 20/8 and the value of the ring is now $1,250

Answer 1

The correct function to represent the value of the ring is y = 500(1 + 0.08)^20 and the value of the ring is now $2,330.

Step-by-step explanation:

The correct function to represent the value of the ring is y = 500(1 + 0.08)20. This is because the value of the ring increases by 8% each year, and the exponential function accounts for the compounding effect. To solve for the value of the ring now, you would substitute the value of x = 20 into the function and calculate.

Using the function, the value of the ring after 20 years is $2,330. So the correct option is:

The function is y = 500(1 + 0.08)20 and the value of the ring is now $2,330.

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