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?
Correct answer: C. Increasing exponential
- A. Decreasing exponential
- B. Decreasing linear
- C. Increasing exponential
- D. Increasing linear
Explanation
Choice C is correct. Because the value of the investment increases each year, the function that best models how the value of the investment changes over time is an increasing function. It′s given that each year, the value of the investment increases by 0.49% of its value the previous year. Since the value of the investment changes by a fixed percentage each year, the function that best models how the value of the investment changes over time is an exponential function. Therefore, the function that best models how the value of the investment changes over time is an increasing exponential function.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Quantitative Reasoning
Quantitative reasoning applies arithmetic and basic algebra to numerical relationships, including percentages, ratios, averages, fractions, proportions, profit and loss, rates, time, work and measurement. Questions focus on translating words into equations, choosing an efficient method and checking whether the result is numerically reasonable.
Practise Quantitative Reasoning
625 free Quantitative Reasoning MCQs from Analytical and Logical Reasoning, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Analytical and Logical Reasoning questions like this
Analytical and Logical Reasoning is on 27 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Quantitative Reasoning questions
The equation E(t) = 5(1.8)t gives the estimated number of employees at a restaurant, where t is the number of years since the restaurant opened. Which of the following is the best interpretation of the number 5 in this context?
For the right triangle shown, a = 4 and b = 5. Which expression represents the value of c ?
Tilly earns p dollars for every w hours of work. Which expression represents the amount of money, in dollars, Tilly earns for 39w hours of work?
The population of Greenville increased by 7% from 2015 to 2016. If the 2016 population is k times the 2015 population, what is the value of k ?
An event planner is planning a party. It costs the event planner a onetime fee of $35 to rent the venue and $10.25 per attendee. The event planner has a budget of $200. What is the greatest number of attendees possible without exceeding the budget?
If 4x − 4 = 112, what is the positive value of x − 1 ?