Write an exponential function to model the situation. Tell what each variable represents. A price of $145 increases by 6% each month.
I know that the equation i should use is y=ab to the power of x. I got this: y=145(1.6) to the power of x. But i got it wrong. I know that the a is 145. But I can't figure out what the b would be. I know the b is bigger than zero though because it is increasing. Help please? I've been trying and I can't figure this out.

Question

Write an exponential function to model the situation. Tell what each variable represents. A price of $145 increases by 6% each month.
I know that the equation i should use is y=ab to the power of x. I got this: y=145(1.6) to the power of x. But i got it wrong. I know that the a is 145. But I can't figure out what the b would be. I know the b is bigger than zero though because it is increasing. Help please? I've been trying and I can't figure this out.

jim_thompson5910 · Answer

the 1.6 means it increases by 60%, not 6%

jim_thompson5910 · Answer

you need to have 1.06

jim_thompson5910 · Answer

other than that, everything looks correct