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Iteru [2.4K]
3 years ago
12

The price of a rare collection car has increased exponentially

Mathematics
1 answer:
Hunter-Best [27]3 years ago
4 0

Answer: £208,000

Step-by-step explanation:

Hi, to answer this question we have to apply an exponential growth function:

A = P (1 + r) t  

Where:

p = original price

r = increase rate (decimal form)

t= years  (2015-2010 =5 years)

A = price after t years

Replacing with the values given:

265,000 = p (1+ 0.05)^5

Solving for p

265,000 = p (1.05)^5

265,000 = p (1.05)^5

265,000/ (1.05)^5 =p

p =  £207,634. =208,000 (rounded)

Feel free to ask for more if needed or if you did not understand something.

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