Question

14 mark for review each year, the value of an investment increases by 0.49% of its value the previous year. which of the following functions best models how the value of the investment changes over time? a decreasing exponential b decreasing linear c increasing exponential d increasing linear

Explanation:

Step1: Analyze the growth type

The investment's value increases by a percentage (0.49%) of its previous year's value. This is a characteristic of exponential growth, as the amount of increase depends on the current value (not a constant amount, which would be linear).

Step2: Determine if it's increasing or decreasing

Since the value is increasing each year (the growth rate is positive, 0.49% increase), it's an increasing function. Combining these, it's an increasing exponential model.

Answer:

C. Increasing exponential