Question

The value of a Charizard Holo Rare Pokemon card increases every year at a rate of 2%. Today, the card is valued at $26.81. The owner expects to sell the card as soon as the value is over $40. Which equation best represents this situation?

A) V=26.81(0.02) ^t

B) V=26.81(1.02)^ t

C) V=26.81t ^2

D) V=26.81+0.02^t

Answer 1

The best representation of the situation where a Charizard Holo Rare Pokémon card's value increases at a rate of 2% per year is the equation V=26.81(1.02)^t, which reflects exponential growth from the current value of $26.81.

Step-by-step explanation:

If the value of a Charizard Holo Rare Pokemon card increases at an annual rate of 2%, and today it is valued at $26.81, we are dealing with exponential growth. The correct equation to represent the situation where V is the future value of the card and t is the number of years in the future is:

B) V=26.81(1.02)^t

This equation starts with the current value of the card, $26.81, and multiplies it by 1.02 (representing a 2% increase) to the power of t, the number of periods (years) for the growth.

The other options are incorrect because they either don't account for exponential growth, add an incorrect factor, or use the wrong exponent term.