Fuel A is .04 or 4% OF THE FIRST YEAR increase each year (simple interest)
for fuel B
3.22 / 3.04 = 1.06 or 6% increase per month (3.61/3.41 is also 6% )
This is not only higher interest percent but is COMPOUNDED
3.61/3.04 = 1.188 during 3 years or total of 6.2% per year if it were simple interest
The price of fuel may increase due to demand and decrease due to overproduction. Marco is studying the change in the price of two types of fuel, A and B, over time.
The price f(x), in dollars, of fuel A after x months is represented by the function below:
f(x) = 2.96(1.04)x
Part A: Is the price of fuel A increasing or decreasing and by what percentage per month? Justify your answer. (5 points)
Part B: The table below shows the price g(m), in dollars, of fuel B after m months:
m (number of months) 1 2 3 4
g(m) (price in dollars) 3.04 3.22 3.41 3.61
Which type of fuel recorded a greater percentage change in price over the previous month? Justify your answer. (5 points)
1 answer
1 answer