Answer:
16%
Step-by-step explanation:
To solve this we are using the standard growth equation:
Were
is the final value after
years
is the initial value
is the growth factor (yearly rate of appreciation in our case) in decimal form
is the time in years
We know from our problem that gold coin appreciated in value from $200.00 to $475.00 in 6 years, so ,
, and
.
Let's replace the values in our equation and solve for :
which rounds to
Since our appreciation rate is in decimal form, we need to multiply it by 100% to express it as percentage:
0.16*100% = 16%
We can conclude that the yearly appreciation rate of our gold coin is approximately 16%
