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igor_vitrenko [27]
3 years ago
6

Marilyn collects old dolls. She purchases a doll for $450. Research shows the doll's value with increase by 2.5% each year.

Mathematics
1 answer:
Irina-Kira [14]3 years ago
8 0

Answer:

\$737.38

Step-by-step explanation:

we know that

The equation of a exponential growth function is given by

y=a(1+r)^x

where

y is the value of the doll

x is the number of years

a is the initial value

r is the rate of change

we have

a=\$450\\r=2.5\%=2.5/100=0.025

substitute

y=450(1+0.025)^x

y=450(1.025)^x

What will be the value of the doll in 20 years?

For x=20 years

substitute in the equation

y=450(1.025)^{20}=\$737.38

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