Algebra-1

The function that describes the situation where a stock valued at 200 dollars increases by 5% per day is exponential.

Here’s why:

1.Exponential Function: The value of the stock increases by a constant percentage (5%) each day. This kind of growth is characteristic of exponential functions, where the quantity increases multiplicatively rather than additively.

The general form of an exponential growth function is:

where:

a is the initial amount (in this case, 200),

b is the growth factor (for a 5% daily increase, (b = 1 + 0.05 = 1.05)),

x is the number of days.

So the function describing the stock's value over time is: