Example 2

You own your own business and buy your own health insurance. This year, you will pay $3600 for your health insurance, but premiums are expected to rise by 5% each year. Write a function to represent this scenario. Complete a table of values to show how much you will be paying for health insurance after 2, 4, 6, 8, and 10 years. Graph the function and identify the parameters in this problem. What do the parameters represent in the context of the problem?
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.