Question

Suppose that the dollar value psi(t) of a certain car that is years old is given by the following exponential function v(t) = 25.900 * (1.12) ^ t

Answer 1

we have the exponential function

`v(t)=25,900(1.12)^t`

Part A

The initial value is $25,900

Part B

The function represents a growth function because the base of the exponential function

b=1.12 is greater than 1.

Part C

we have that

b=1+r

b=1.12

so

1.12=1+r

r=1.12-1

r=0.12

Convert to percentage

0.12*100=12%

the rate is 12%