Question

Determine what type of model best fits the given situation: the value of a classic car is presently $50,000 and is increasing in value by 5% per year.

Answer 1

The model that best fits the given situation is exponential  

what is an Exponential Function?

Exponential function, in mathematics a relationship of the form y = $a^{x}$, where the independent variable x extends over the entire real number line as an exponent of a positive number a. The most important exponential function is y = $e^{x}$.    

Here,

The value of a classic car = $50,000

It is increasing in value by 5% per year.

So, here we have a = 50,000 and x = 5%

The function is increasing.

b = 1+5%

b = 1+0.05 = 1.05

Hence, the function that describes this situation is given by:

$f(x)=50000(1.05)^{x}$

To learn more about Exponential Function from the given link

https://brainly.com/question/10750625

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