The value of a collector's item is expected to increase exponentially each year. The item is purchased for $500. After 2 years, the item is worth $551.25. Which equation represents y, the value of the item after x years?

y = 500 (0.05) x

y = 500 (1.05) x

y = 500 (0.1025) x

y = 500 (1.1025) x

Question

Mathematics

Xander Orr

10 June, 14:51

The value of a collector's item is expected to increase exponentially each year. The item is purchased for $500. After 2 years, the item is worth $551.25. Which equation represents y, the value of the item after x years?

y = 500 (0.05) x

y = 500 (1.05) x

y = 500 (0.1025) x

y = 500 (1.1025) x

+5

Answers (1)

Know the Answer?

Mekhi Combs · Answer 1

Y = 500 (1 + r) ^x; where r is the rate and x is the number of years.

500 (1 + r) ^2 = 551.25

(1 + r) ^2 = 551.25/500 = 1.1025

1 + r = sqrt (1.1025) = 1.05

Therefore, the equation that represents y, the value of the item after x years is

y = 500 (1.05) ^x

The value of a collector's item is expected to increase exponentially each year. The item is purchased for $500. After 2 years, the item is worth $551.25. Which equation represents y, the value of the item after x years?y = 500 (0.05) xy = 500 (1.05) xy = 500 (0.1025) xy = 500 (1.1025) x

The value of a collector's item is expected to increase exponentially each year. The item is purchased for $500. After 2 years, the item is worth $551.25. Which equation represents y, the value of the item after x years?

y = 500 (0.05) x

y = 500 (1.05) x

y = 500 (0.1025) x

y = 500 (1.1025) x