Question
Marcus buys $1,000 worth of stock in a company. He expects the value of the stock to increase by 5% each year.
Which equation could Marcus use to predict the stock's value x years after he purchases the stock?
A.
f(x) = 1,000(5)x
B.
f(x) = 1,000(x)5
C.
f(x) = 1,000(1.05)x
D.
f(x) = 1,000(x)1.05
Which equation could Marcus use to predict the stock's value x years after he purchases the stock?
A.
f(x) = 1,000(5)x
B.
f(x) = 1,000(x)5
C.
f(x) = 1,000(1.05)x
D.
f(x) = 1,000(x)1.05
Answers
GPT-4o mini
To predict the stock's value after \( x \) years with an annual increase of 5%, Marcus would use a formula that reflects exponential growth based on the initial investment and the growth rate.
The correct equation that represents this situation is:
**C.** \( f(x) = 1,000(1.05)^x \)
This equation shows that the initial investment of $1,000 will grow by a factor of \( (1.05) \) for each year \( x \).
The correct equation that represents this situation is:
**C.** \( f(x) = 1,000(1.05)^x \)
This equation shows that the initial investment of $1,000 will grow by a factor of \( (1.05) \) for each year \( x \).