The value of a vintage car over time is represented by the function V (t) = 24,300 (1.37) t, where t is the time in years. What is the rate of increase? Enter your answer in the box.

For the function V (t) = 24300 (1.37) t, the rate of increase is 37%.

Step-by-step explanation:

The function represents the value (V) of the car over time (t). This type of function is exponential growth, which means for each year, the value of the vintage car will increase by a rate of 37%. Exponential growth functions are represented by the equation f (x) = ab^x, where 'a'=initial value, 'b'=the rate and 'x' represents time. In this case, our initial value of the car is $24,300 and the rate is 1.37. A rate of 1.37 indicates that the car will retain its initial value (1) as well as increase be an additional 37 percent (.37) over time.