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The value of Adam's model railway is $550.
This value increases exponentially at a rate of r %
per year.
At the end of 5 years the value will be $736.
Calculate the value of r.

The value of Adams model railway is 550 This value increases exponentially at a rate of r per year At the end of 5 years the value will be 736 Calculate the val class=

Respuesta :

Answer:(c)

Step-by-step explanation:

Given

The initial value of Adam's model is [tex]A_o=\$550[/tex]

the value increases exponentially with the rate of [tex]r\%[/tex]

Time period [tex]t=5\ years[/tex]

Final amount [tex]A=\$736[/tex]

Exponential growth is given by

[tex]\Rightarrow A=A_o(1+r)^t[/tex]

Putting values

[tex]\Rightarrow 736=550(1+r)^5\\\\\Rightarrow (1+r)^5=1.338[/tex]

[tex]\Rightarrow 1+r=1.05999\\\Rightarrow r=0.05999\ or\ 5.99\%\approx 6\%[/tex]

Option (c) is correct

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