Question

the expression $1.5 \cdot 1.09^t$ models the housing costs, in thousands of dollars, for summer term $t$ years since chinedu applied to his college. what does $1.09$ represent in this expression? choose 1 answer: \\(\boldsymbol{\text{a}}\\) chinedu applied to his school $9$ years ago. \\(\boldsymbol{\text{b}}\\) the summer housing costs were $\\$1,090$ the year that chinedu applied to his college. \LXI2 the summer housing costs increase by $9\\%$ each year.

Explanation:

The given expression is an exponential growth model of the form $P(t) = P_0(1+r)^t$, where $P_0$ is the initial value, $r$ is the annual growth rate, and $t$ is time. Here, $1.09 = 1 + 0.09$, so 0.09 (or 9%) is the annual growth rate of housing costs.

Answer:

C. The summer housing costs increase by 9% each year.