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CaHeK987 [17]
3 years ago
6

The value of Adam's model railway is $550.

Mathematics
1 answer:
garik1379 [7]3 years ago
6 0

Answer:(c)

Step-by-step explanation:

Given

The initial value of Adam's model is A_o=\$550

the value increases exponentially with the rate of r\%

Time period t=5\ years

Final amount A=\$736

Exponential growth is given by

\Rightarrow A=A_o(1+r)^t

Putting values

\Rightarrow 736=550(1+r)^5\\\\\Rightarrow (1+r)^5=1.338

\Rightarrow 1+r=1.05999\\\Rightarrow r=0.05999\ or\ 5.99\%\approx 6\%

Option (c) is correct

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