Answer: y = 21600(1.03)^x
Step-by-step explanation:
The formula for determining exponential growth is expressed as
A = P(1 + r)^t
Where
A represents final value.
P represents initial value.
r represents rate of increase.
t represents number of years
She will be paying $1800 per month in rent. Since there are 12 months in a year, it means that the amount that she would pay in a year is
1800 × 12 = $21600. Therefore, P = 216000
She expects a 3% rent increase each year. This means that
r = 3/100 = 0.03
Therefore, the expression for the rent y as an exponential function of the number of years rented, x is
y = 21600(1 + 0.03)^x
y = 21600(1.03)^x
