Question

Can anyone explain how to solve this?

Answer 1

E

Explanation:

Let x be the initial value

after 1 year value = 1.1 x

after 2 yrs v = 1.1 * 1.1 x

after 3 yrs v = 1.1 * 1.1 * 1.1 x

after 4 yrs v = 1.1 * 1.1 * 1.1 * 1.1 x

or simply : value = ( 1.1)^n x where n = number of years

for n= 4 years value = (1.1)^4 x = 1.4641 x

this represents a .4641 increase or 46.41 % increase Answer E