Question

A limited-edition poster increases in value each year with an initial value of $18. After 1 year and an increase of 15% per year, the poster is worth $20.70. Which equation can be used to find the value, y, after x years? (Round money values to the nearest penny.)

y = 18(1.15)x
y = 18(0.15)x
y = 20.7(1.15)x
y = 20.7(0.15)x

Answer 1

y = 18(1.15)^x

Explanation: start value 18 and grow by 15% each year → multiply by growth factor 1.15 each year. Check: for x = 1, y = 18(1.15) = 20.70.