Answered

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A cable company uses the formula S = 20,000 (1 + 0.08)y to estimate the number

of subscribers, S, that use their service after y years. If there were 20,000 cable

television subscribers when the cable company began, what is the meaning of the

expression (1 + 0.08)Y?

A. Every year the number of subscribers is estimated to increase by 8 over the number

of subscribers the year before.

B. Every year the number of subscribers is estimated to increase by 8% of the original

20,000 subscribers

C. Every year the number of subscribers is estimated to increase by 8% over the

number of subscribers the year before.

D. Every year the number of subscribers is estimated to increase by 80% of the

original 20,000 subscribers.

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Answer:

C. Every year the number of subscribers is estimated to increase by 8% over the

number of subscribers the year before.

Step-by-step explanation:

Using the formula :

S = 20,000 (1 + 0.08)^y to estimate ;

S = number of subscribers ; y = years

The expression : (1 + 0.08)^y

0.08 = 0.08 * 100% = 8%

(1 + 0.08)^y represents a continous growth or increase in the number of subcsribers by 8% over the number of subscribers the preceeding year

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