The price of products may increase due to inflation and decrease due to depreciation. Derek is studying the change in the price of two products, A and B, over time.
The price f(x), in dollars, of product A after x years is represented by the function below:
f(x) = 72(1.25)x
Part A: Is the price of product A increasing or decreasing and by what percentage per year? Justify your answer. (5 points)
ANSWERS
2015-11-01 17:51:24
[latex]f qquad extit{Amount for Exponential Growth}\\ A=I(1 + r)^tqquad egin{cases} A= extit{accumulated amount}\ I= extit{initial amount}\ r=rate o r\% o frac{r}{100}\ t= extit{elapsed time}\ end{cases} \\\ stackrel{A}{f(x)}=stackrel{I}{72}(1.25)^ximplies stackrel{A}{f(x)}=stackrel{I}{72}(1+stackrel{r}{0.25})^x \\\ cfrac{r}{100}=0.25implies r=0.25cdot 100implies r=25.00\%[/latex]
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