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pogonyaev
3 years ago
9

The cost of an limited edition figurine starts at $255 and it increases in value by 8% each year. What is the growth or decay ra

te as a decimal? What is the initial value? Write an exponential model that represents the cost f (t) of the figurine t years after it's bought. After 6 years the figurine's value is ?
Mathematics
1 answer:
3241004551 [841]3 years ago
6 0

Answer:

Growth rate = 8% = 0.08

Initial value (Po) = $255

F(t) = Po* e^rt

F(t) = $412.09897

Step-by-step explanation:

Given that:

Initial cost = $255

Rate of increase per year (r) = 8% = 0.08

Growth rate :

Final amount = Initial amount * (1 + rate)^time

Growth rate = 8% = 0.08

Initial value (Po) = $255

Exponential model for the cost :

F(t) = Initial value * e^(rate * time)

F(t) = Po* e^rt

Value after 6 years :

F(t) = Po* e^rt

t = 6

F(t) = 255 * e^(0.08*6)

F(t) = 255 * 1.6160744

F(t) = $412.09897

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