Question

James takes on a $5,000 business loan to remodel his store. The following table represents the amount of money James owes the bank, where x is the number of years it takes him to pay the money back and y is the amount of money he owes.

years(x)
0
1
2
3
4
5
money(y)
$5,000
$5,000
$6,050
$6,655
$7,320.5
$8,052.55

The function of the amount of money that James owes the bank is

A. linear

B. quadratic

C. exponential

The equation for the function for the amount of money that James owes the bank is

A. y=5000x^2+1.1x+5000

B. y=5000+2500x

C. y=2500(1.1)x

D. y=5000(1.1)x

The annual interest rate of the loan is

A. 5%

B. 8%

C. 10%

D. 12%

If James does not pay the loan back for 10 years he will owe approximately

A. $8,144.47

B. $10,794.62

C. $12,968.71

D. $15,529.24

Answer 1

The function of the amount of money that James owes the bank is C. exponential.

The equation for the function for the amount of money that James owes the bank is D. y=5000(1.1)^x

The annual interest rate of the loan is B. 8%.

If James does not pay the loan back for 10 years he will owe approximately A. $8,144.47.