Two trucking companies are increasing the bonuses given to employees.

Company Description
The bonus given to employees increases by $50
each year.
The bonus given to employees increases by 5%
each year.
Which statement is true?

Responses

The descriptions for both companies are best modeled by linear functions.

The descriptions for both companies are best modeled by linear functions.

The descriptions for both companies are best modeled by nonlinear functions.

The descriptions for both companies are best modeled by nonlinear functions.

The description for Company
is best modeled by a linear function, while the description for Company
is best modeled by a nonlinear function.

The description for Company 1 is best modeled by a linear function, while the description for Company 2 is best modeled by a nonlinear function.

The description for Company
is best modeled by a nonlinear function, while the description for Company
is best modeled by a linear function.

The description for Company 1 is best modeled by a nonlinear function, while the description for Company 2 is best modeled by a linear function.

1 answer

To determine whether the bonus increases for the two companies are best modeled by linear or nonlinear functions, let's analyze each company's description.

  1. Company 1: The bonus increases by a fixed dollar amount of $50 each year. This is a constant increase, which can be represented by a linear function. In mathematical terms, if \( B(t) \) is the bonus after \( t \) years, it would be \( B(t) = B_0 + 50t \), where \( B_0 \) is the starting bonus.

  2. Company 2: The bonus increases by 5% each year. This means that the increase is a percentage of the current bonus, leading to exponential growth. In this case, if the initial bonus is \( B_0 \), after \( t \) years the bonus would be \( B(t) = B_0(1 + 0.05)^t \). This is a classic example of exponential growth, which is nonlinear.

Based on this analysis:

  • The description for Company 1 is best modeled by a linear function.
  • The description for Company 2 is best modeled by a nonlinear function.

Thus, the correct statement is:

The description for Company 1 is best modeled by a linear function, while the description for Company 2 is best modeled by a nonlinear function.