In 2016, 5,200 parking permits were issued in a city. The number of parking permits increases by 5% every year. Let y represent the number of parking permits issued x years since 2016.

Question

Which type of sequence does the situation represent?

A.
The situation represents an arithmetic sequence because the successive y-values have a common difference of 1.5.
B.
The situation represents an arithmetic sequence because the successive y-values have a common difference of 1.05.
C.
The situation represents a geometric sequence because the successive y-values have a common ratio of 1.05.
D.
The situation represents a geometric sequence because the successive y-values have a common ratio of 1.5.

Answer 1

The situation described represents a geometric sequence because the number of parking permits issued each year increases by a constant percentage (5%). In this case, the growth factor is 1.05 (which accounts for the original amount plus the 5% increase).

Since the number of permits grows by a factor of 1.05 each year, the correct choice is:

C. The situation represents a geometric sequence because the successive y-values have a common ratio of 1.05.