Question

The luxury tax threshold in a professional sports league is the amount in total payroll that teams must stay under to prevent being levied a competitive balance tax by the league’s commissioner. One model that could be used to represent the amount of the league’s luxury threshold A, in millions of dollars, t years since 2003 is A(t)=120(1.033)^t. Suppose a second model assumed that the league’s luxury threshold was \$117 million in 2003 and increased by 3.5% each year. How would the function A(t) change to represent the second model?

A: The coefficient changes from 120 to 117, and the base changes from 1.033 to 1.035. The function that represents the second model is A(t)=117(1.035)^t.
B: The coefficient changes from 120 to 117, and the base changes from 1.033 to 0.035. The function that represents the second model is A(t)=117(0.035)^t.
C: The coefficient changes from 120 to 103.5, and the base changes from 1.033 to 1.17. The function that represents the second model is A(t)=103.5(1.17)^t.
D: The coefficient changes from 120 to 103.5, and the base changes from 1.033 to 0.17. The function that represents the second model is A(t)=103.5(0.17)^t.

1. 