Select the correct answer.

In the year 2000, there were 200,000 cell phone subscribers in a city in New York. The number of subscribers increased by 60 percent per year after 2000. Which equation can be used to model the number of subscribers, [tex]$y$[/tex], in the city [tex]$t$[/tex] years after 2000?

A. [tex]$y=200,000(1+60)^t$[/tex]
B. [tex][tex]$y=200,000(1+0.6)^t$[/tex][/tex]
C. [tex]$y=200,000(1-60)^t$[/tex]
D. [tex]$y=200,000(1-0.6)^t$[/tex]



Answer :

To determine the correct equation to model the number of cell phone subscribers in a city [tex]$t$[/tex] years after the year 2000, given that the number of subscribers increases by 60 percent per year, we should follow these steps:

1. Identify the initial number of subscribers:
In the year 2000, the initial number of cell phone subscribers is 200,000.

2. Consider the annual growth rate:
The subscribers increase by 60 percent each year. This rate, as a decimal, is 0.60.

3. Modeling the exponential growth:
In general, the formula for exponential growth is:
[tex]\[ y = P(1 + r)^t \][/tex]
where:
- [tex]\( y \)[/tex] is the number of subscribers after [tex]\( t \)[/tex] years,
- [tex]\( P \)[/tex] is the initial amount (200,000 subscribers),
- [tex]\( r \)[/tex] is the growth rate per period (0.60),
- [tex]\( t \)[/tex] is the number of time periods (years).

4. Incorporate the given values into the equation:
- Replace [tex]\( P \)[/tex] with 200,000,
- Replace [tex]\( r \)[/tex] with 0.60.

Thus, the correct equation to use is:
[tex]\[ y = 200,000(1 + 0.60)^t \][/tex]

Let's match this with the given options:

A. [tex]\( y = 200,000(1 + 60)^t \)[/tex] is incorrect because "60" is used instead of "0.60".

B. [tex]\( y = 200,000(1 + 0.6)^t \)[/tex] is correct, as it correctly incorporates a 60 percent increase as a decimal (0.6).

C. [tex]\( y = 200,000(1 - 60)^t \)[/tex] is incorrect because it incorrectly models a decrease (subtraction) and uses "60" instead of "0.60".

D. [tex]\( y = 200,000(1 - 0.6)^t \)[/tex] is incorrect because it represents a decrease by 60 percent rather than an increase.

Therefore, the correct answer is:
[tex]\[ \boxed{y = 200,000(1 + 0.6)^t} \][/tex]

Hence, the correct choice is:
B. [tex]\( y = 200,000(1 + 0.6)^t \)[/tex]