Two startup companies, Company X and Company Y, begin operations at the same time. At the start of operations (), both companies have a monthly revenue of dollars.
* The monthly revenue of Company X increases by a constant amount of dollars every months.
* The monthly revenue of Company Y increases exponentially, growing by a constant percent of every months.
Let and represent the monthly revenue of Company X and Company Y, respectively, after months of operation. Which of the following functions represents the ratio for any positive integer that is a multiple of ?
- A
- B
- C
- Cevap
Cevap
The expression
The correct answer is the expression . This is found by representing the linear growth of Company X as because its revenue increases by a constant amount of per month (since every 3 months is ). The exponential growth of Company Y is represented as because its revenue increases by every 2 months, which yields a growth factor of applied times over months. The ratio is then , which simplifies to the correct expression after canceling the common factor .
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Linear and Exponential Growth
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