Algebra 2 question

Question

Teds comic book collection, which is worth $1300 five years ago, has been increasing in value by 12% per year since then. Which expression gives the current value of the collection/

 

A) 1300(1.12)^5

B) 1300(.12)^5

C) 1300(1.12)(5)

D) 1300[1+(.12)(5)]

Answer 1

The typical form of an exponential growth equation is:

 

P = a(r)^t,

 

where t = time, a = initial amount, r = rate of growth, and P = amount remaining after t time has gone by. The rate of growth is a representation of how much of the previous year's population remains the next year. Since the worth increases by 12% each year, each year's worth is 112% of the previous year's worth.

 

That means your answer is A, with an initial wort of $1300, a growth rate of 1.12, and a time of 5 years.