Decreasing exponential
Decreasing linear
Increasing exponential
Increasing linear
Explanation
Correct answer: C.
Choice C is correct. Because the value of the investment increases each year, the function that best models how the value of the investment changes over time is an increasing function. It′s given that each year, the value of the investment increases by of its value the previous year. Since the value of the investment changes by a fixed percentage each year, the function that best models how the value of the investment changes over time is an exponential function. Therefore, the function that best models how the value of the investment changes over time is an increasing exponential function.
Desmos solution:
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Reviewed and rewritten by CookSAT
Why the other choices are wrong
Choice A
Choice A is incorrect and may result from conceptual errors.
Choice B
Choice B is incorrect and may result from conceptual errors.
Choice D
Choice D is incorrect and may result from conceptual errors.