Question

The function f(x) = 34,000(1.05)* can be used to

determine Noah's cost of living in Houston over time.
What does the 1.05 represent?
A The cost of living will increase by approximately 1% each year
B The cost of living will decrease by approximately 1% each year
C The cost of living will increase by approximately 5% each year
D The cost of living will decrease by approximately 5% each year

Answer 1

9514 1404 393

Answer:

C The cost of living will increase by approximately 5% each year

Explanation:

If we assume your function is ...

`f(x)=34000(1.05)^x\qquad\text{x is years}`

Then the growth factor 1.05 represents a growth rate of 1.05 -1 = .05 = 5% per year. The positive growth rate means the cost of living is increasing.

Noah's cost of living is increasing about 5% per year.