A home’s value increases at an average rate of 5.5% each year. The current value is $120,000. What function can be used to find the value of the home after x years?

For yearly growth of 5.5%, multiply the value by 1 + 0.055 = 1.055 each year. After x years, that multiplier is raised to the xth power, so the function is f(x) = 120,000(1.055)^x. This is choice C, the exponential growth function.

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