Answer:
Option 2 is correct.
Step-by-step explanation:
Actual price = $500
After 2 years the worth of item is increased to = $551.25
We need to find the equation that represents y, the value of the item after x years.
According to given information the equation can be of form
where r represents the growth and x represents the number of yeras.
We need to find the value of r that represents the growth
The value of y = 551.25, and value of x = 2
Putting values and solving:
Putting value of r in the equation
So Option 2 is correct.
