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Fidel has a rare coin worth $550. Each decade, the coin's value increases by 10%. Which kind of function best models the relationship between time and the coin's value? Choose 1 answer: (A) Linear (B) Exponential

Fidel has a rare coin worth $550 \$ 550 . Each decade, the coin's value increases by 10% 10 \% .\newlineWhich kind of function best models the relationship between time and the coin's value?\newlineChoose 11 answer:\newline(A) Linear\newline(B) Exponential

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Q. Fidel has a rare coin worth $550 \$ 550 . Each decade, the coin's value increases by 10% 10 \% .\newlineWhich kind of function best models the relationship between time and the coin's value?\newlineChoose 11 answer:\newline(A) Linear\newline(B) Exponential
  1. Identify Type Increase: Identify the type of increase in the coin's value.\newlineThe coin's value increases by 10%10\% each decade, which means the increase is a percentage of the current value. This is characteristic of exponential growth, not a constant addition.
  2. Determine Function Type: Determine the type of function that models exponential growth.\newlineSince the value increases by a percentage (multiplicative change) rather than a fixed amount (additive change), the function that models this situation is an exponential function.
  3. Choose Correct Answer: Choose the correct answer based on the type of function identified.\newlineThe correct answer is (B) Exponential, as the coin's value increases by a percentage each decade.

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