Question

The V(t)=1.50(1.17)^t represents the value V (t), in dollars, of a comic book t years after its purchase in 2000. Determine the annual growth rate in the value of the comic book and its value in 2025.

Answer 1

The annual growth rate is 17%

The comic book will be worth $76 in the year 2025.

Answer 2

Answer:

Growth rate is 17%

2025 value is $76

Step-by-step explanation:

Here, we want to determine the annual growth rate

The general equation form is;

F = l( 1 + r)^n

where F is the future value

I is the initial value

r is the growth rate

n is the numbering years

To get the growth rate, we simply equate what we have in the bracket to 1 + r

Thus;

1 + r = 1.17

r = 1.17-1

r = 0.17

0.17 is same as 17/100 which is same as 17%

Secondly, we want to get the value of the book in 2025

What we have to do here is to substitute (2025-2000) for t which is 25

We have;

V(t) = 1.50(1.17)^25

V(25) = 75.986 which is approximately 76