The function \(\mathrm{f(x) = 240,000(1.22)^x}\) gives a company's predicted annual revenue, in dollars, x years after the company started selling...
GMAT Advanced Math : (Adv_Math) Questions
The function \(\mathrm{f(x) = 240,000(1.22)^x}\) gives a company's predicted annual revenue, in dollars, x years after the company started selling jewelry online, where \(\mathrm{0 < x ≤ 10}\). What is the best interpretation of the statement '\(\mathrm{f(5)}\) is approximately equal to \(\mathrm{648,650}\)' in this context?
5 years after the company started selling jewelry online, its predicted annual revenue is approximately 648,650 dollars.
5 years after the company started selling jewelry online, its predicted annual revenue will have increased by a total of approximately 648,650 dollars.
When the company's predicted annual revenue is approximately 648,650 dollars, it is 5 times the predicted annual revenue for the previous year.
When the company's predicted annual revenue is approximately 648,650 dollars, it is 5% greater than the predicted annual revenue for the previous year.
1. TRANSLATE the function definition
- Given information:
- \(\mathrm{f(x) = 240,000(1.22)^x}\)
- \(\mathrm{f(x)}\) = predicted annual revenue in dollars
- \(\mathrm{x}\) = years after company started selling jewelry online
- \(\mathrm{f(5) \approx 648,650}\)
- What this tells us: We need to interpret what \(\mathrm{f(5)}\) means using the function definition
2. INFER what f(5) represents
- Since \(\mathrm{f(x)}\) gives the annual revenue and \(\mathrm{x}\) represents years after starting online:
- \(\mathrm{f(5)}\) means "the annual revenue when \(\mathrm{x = 5}\)"
- \(\mathrm{x = 5}\) means "5 years after starting online sales"
- Therefore: \(\mathrm{f(5)}\) = "annual revenue 5 years after starting online sales"
3. TRANSLATE the mathematical statement to English
- \(\mathrm{f(5) \approx 648,650}\) means:
- "The annual revenue 5 years after starting online sales is approximately 648,650 dollars"
Answer: A
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Students misinterpret what \(\mathrm{f(5)}\) represents in the context
Many students see "\(\mathrm{f(5) \approx 648,650}\)" and think the 5 has some special meaning beyond being the input value. They might think:
- The revenue is 5 times something (Choice C)
- There's a 5% increase (Choice D)
- The 648,650 represents a total increase over 5 years (Choice B)
This happens because they don't carefully connect the function notation \(\mathrm{f(5)}\) to "the value of f when \(\mathrm{x = 5}\)" and then to "the annual revenue 5 years after starting online."
This may lead them to select Choice B, C, or D based on their misconception.
The Bottom Line:
Success on this problem requires carefully translating function notation into contextual language. The key insight is that \(\mathrm{f(5)}\) simply means "plug in \(\mathrm{x = 5}\) and see what the function outputs" - which in this context means "the annual revenue 5 years after starting online sales."
5 years after the company started selling jewelry online, its predicted annual revenue is approximately 648,650 dollars.
5 years after the company started selling jewelry online, its predicted annual revenue will have increased by a total of approximately 648,650 dollars.
When the company's predicted annual revenue is approximately 648,650 dollars, it is 5 times the predicted annual revenue for the previous year.
When the company's predicted annual revenue is approximately 648,650 dollars, it is 5% greater than the predicted annual revenue for the previous year.