Question

Mark buys Apple stock for $100 and its value increases by a factor of 1.5 each week. Which equation represents the relationship between the number of weeks past since purchase, t, and the current value of the stock, V?

Answer 1

Given:

Initial value of the stock = $100

Growth factor = 1.5 each week.

To find:

The equation that represents the relationship between the number of weeks past since purchase and the current value of the stock.

Solution:

Let V be the current value of the stock after t week.

The exponential growth model is:

`V=ab^t`

Where, a is the initial value of stock, b is the weekly growth factor, t is the number of weeks.

Substituting
`a=100,b=1.5`, we get

`V=100(1.5)^t`

Therefore, the required equation for the given situation is
`V=100(1.5)^t`.