Question

A rare coins value can be modeled with the equation W(x)=250(1.085)^x where x represents the number of years since the coin was first purchased and and W(x) is the current worth of the coin. Explain what 250 and 1.085 represent in the context of the problem.

Answer 1

250 is the initial value and 1.085 is the growth factor.

Explanation:

A rare coin's value can be modeled with the equation

`W(x) = 250(1.085)^(x)` ................. (1)

where x represents the number of years since the coin was first purchased and W(x) is the current worth of the coin.

Now, this equation (1) is an exponential growth function.

Here, 250 is the initial value as we get W(x = 0) = 250 and 1.085 is known as the growth factor which can not be equal to 1. (Answer)