You put $100 in a stock that increases in value by 20% each year. The function v = 100(1.2)x describes the value v of the stock after x years. Evaluate the function for x = 2. What does the value represent?
a.

144; this is the value of the stock after 1.2 years

c.

144; this is 20% of the value
b.

144; this is the value of the stock after 2 years

d.

144; this is the number of years the stock has been on the market with a 20% increase

Question

You put $100 in a stock that increases in value by 20% each year.  The function v = 100(1.2)x describes the value v of the stock after x years.  Evaluate the function for x = 2.  What does the value represent?
a.
	
144; this is the value of the stock after 1.2 years
	
c.
	
144; this is 20% of the value
b.
	
144; this is the value of the stock after 2 years
	
d.
	
144; this is the number of years the stock has been on the market with a 20% increase

anonymous · Answer

I think the answer is B, but I'm not sure, please help!