Set 7: Exponential Functions (Advanced)

Choice A is correct. Choice A is the correct answer. Apply exponential appreciation. 1. Formula: $V(t) = 5000(1.12)^t$ where $t = 10$. 2. Calculate: $V(10) = 5000(1.12)^{10} = 5000(3.10585) \approx 15,529.24$. 3. Result: Value ≈ $15,529.24. Strategic Tip: 12% growth means multiplying by 1.12 each year. Choice B is incorrect because this assumes simple interest (5000 + 6000). Choice C is incorrect because this growth is too high. Choice D is incorrect because this is only 1 year of growth.