Question

Charisse collects antique salt and pepper shakers. The value of her cactus salt and pepper shakers is shown (56.28$). The value of these salt and pepper is expected to change by an average of -2 2 over 5% per year. What is the value of the salt and pepper shakers projected to be in two years? | Can I get explanation too thanks!

Answer 1

$53.61

Explanation:

It looks like the rate of change is supposed to be -2 2/5% = -2.4% per year. That means the "growth factor" is ...

growth factor = 1 + growth rate

growth factor = 1 -2.4% = 1 -0.024 = 0.976

Each year, Charisse's cactus salt and pepper shakers will have their value multiplied by this factor. After 2 years, their value will be ...

($56.28)(0.976)(0.976) = $56.28×0.976^2 ≈ $53.61

The value is projected to be $53.61 in 2 years.