Question

Bryan purchased a Corvette in 1968 for $4,600. In 2018, the Corvette now has an appraised valued of $57,500. Given that the annual percentage rate has been constant, what is the annual rate of growth?

Answer 1

The answer is A) 5.18

Explanation:

Answer 2

Answer: Annual rate of growth is 5.18%.

Explanation:

Since we have given that

In 1968, Bryan purchased a Corvette = $4600

In 2018, Corvette now has an appraised = $57500

According to question, we need to find the annual growth rate:

As we know the formula for "Compound interest":

`A=P(1+(r)/(100))^n\\\\57500=4600(1+(r)/(100))^(50)\\\\(57500)/(4600)=(1+(r)/(100))^(50)\\\\12.5=(1+(r)/(100))^(50)\\\\r=5.18\%`

Hence, Annual rate of growth is 5.18%.