The value of a share of stock was \$240 on the day it was purchased. …

Question

Prompt

The value of a share of stock was $240 on the day it was purchased. Every year, the value of the share of stock increases by 1% of its value the previous year. Which function

V

gives the value, in dollars, of the share of stock

t

years after the day it was purchased?

V (t) = 240 (1.01 t)

V (t) = 240 (1.1 t)

V (t) = 240 (1.01)^{t}

V (t) = 240 (1.1)^{t}