Question

The value of a collector’s item is expected to increase exponentially each year. The item is purchased for $500 and its value increases at a rate of 5% per year. Find the value of the item after 4 years

Answer 1

Answer:607.81

Step-by-step explanation:that’s what I got believe me on this one guys

Answer 2

The value of the collector's item after 4 years is $607.75.

Given :

Item is purchased for $500.

Value increases at a rate of 5% per year.

Solution :

We know that the exponential growth function is

$y = a(1+r)^x$

where,

a = $500

r = 0.05

x = 4

The value of the item after 4 years is,

$= 500(1+0.05)^4$

$= 500\times(1.05)^4$

$= 607.75$

The value of the item after 4 years is $607.75.

For more information, refer the link given below

https://brainly.com/question/24972665