Which of the following graphs shows the value of the antique clock, y, in dollars, after x years?

Question

Samuel took an antique clock that his grandfather had purchased, to be appraised. The appraiser evaluated the current price of the clock to be $400 and stated that the value will continue to increase at 2% per year.

Answer 1

An increase of 2% means each year's value is 102% of the year before.

 

The y-intercept will be 400, and the initial year is 0.

 

400(1.02) = 408 after 1 year

 

400(1.02)(1.02) = the value after 2 years

 

Etc.