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Naddika [18.5K]
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:
Andreyy893 years ago
7 0
Y = 500(1 + r)^x; where r is the rate and x is the number of years.
500(1 + r)^2 = 551.25
(1 + r)^2 = 551.25/500 = 1.1025
1 + r = sqrt(1.1025) = 1.05

Therefore, the equation that represents y, the value of the item after x years is
y = 500(1.05)^x
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