Use the table below to answer the following question(s).
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000.She expects a salary increase of 5 percent every year.Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent.She expects an annual return of 7 percent on her retirement portfolio.Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
$$\begin{array}{l}
\text { Retirement Plan Model for Sheila }\
\begin{array} { | l | l | }
\hline \text { Data } & \
\hline \text { Retirement Contribution ( percent of salary) } & \
\hline \text { Employer Match } & 9 \text { percent } \
\hline \text { Annual Salary Increase } & 32 \text { percent } \
\hline \text { Annual Return on Investment } & 5 \text { percent } \
\hline & 7 \text { percent } \
\hline
\end{array}
\end{array}$$
-In ________ functions, represented by y = abˣ, y rises or falls at constantly increasing rates.
A)logarithmic
B)power
C)exponential
D)polynomial

Question

Use the table below to answer the following question(s).
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000.She expects a salary increase of 5 percent every year.Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent.She expects an annual return of 7 percent on her retirement portfolio.Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
 $$\begin{array}{l}
\text { Retirement Plan Model for Sheila }\
\begin{array} { | l | l | } 
\hline \text { Data } & \
\hline \text { Retirement Contribution ( percent of salary) } & \
\hline \text { Employer Match } & 9 \text { percent } \
\hline \text { Annual Salary Increase } & 32 \text { percent } \
\hline \text { Annual Return on Investment } & 5 \text { percent } \
\hline & 7 \text { percent } \
\hline
\end{array}
\end{array}$$
-In ________ functions, represented by y = abˣ, y rises or falls at constantly increasing rates.
A)logarithmic
B)power
C)exponential
D)polynomial

Quizplus · Accepted Answer

The given function y = abˣ is an exponential function. In exponential functions, the variable x represents an exponent, and the function's output (y) changes at a constant percent rate as x increases. Hence, the statement "y rises or falls at constantly increasing rates" is true only for exponential functions. Therefore, the correct choice is C.

Use the Table Below to Answer the Following Question(s) -In ________ Functions, Represented by Y = Abˣ, Y Rises