Suppose the annual rate of inflation is about 4% this means that the cost of an item increases by about 4%. write and evaluate an exponential expression to find the answer to this question.. if a piano costs $3,500 today, what did it cost 4 years ago?

the answer is d

step-by-step explanation:

y+3=-4(x-2)

y+3=-4x+8

  -3         -3  

y=-4x+5

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.