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True [87]
3 years ago
5

The value of a collector’s item is expected to increase exponentially each year. the item is purchased for $500. after 2 years,

the item is worth $551.25. which equation represents y, the value of the item after x years? y = 500(0.05)x y = 500(1.05)x y = 500(0.1025)x y = 500(1.1025)x
Mathematics
1 answer:
sasho [114]3 years ago
8 0

Answer:

y=500(1.05)^x

Step-by-step explanation:

The standard form for an exponential equation is

y=a(b)^x

We have 2 unknowns, a and b, but that's all good because we have 2 (x, y) coordinates we can utilize in order to find a and b.  In our coordinate pair, x is the number of years gone by and y is the value after that number of years.  The problem tells us that an item was purchased for $500.  That translates to "before any time has gone by, the initial value of the item is $500".  In other words, with x being time, no time has gone by, so x = 0.  When x = 0, y = 500.  (0, 500).  Do the same for the next set of numbers.  When x = 2 years gone by, the value is $551.25, so the coordinate is (2, 551.25).  Now we use them to find a.  Use the first coordinate:

500=a(b)^0

Anything raised to the 0 power = 1, therefore:

500 = a(1) and a = 500.

Now onto the next coordinate point using the a value we just found:

551.25 = 500(b)^2

Divide both sides by 500 to get

1.1025=b^2

so b = 1.05.

Now we have the values for a and b, so we fill in:

y = 500(1.05)^x

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