Question

How do i answer this/what is the answer to this

Answer 1

$6.43

Step-by-step explanation:

The given problem can be solved using the exponential growth equation below;

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

where a = the initial cost in 2003 = $4.75

r = rate in decimal = 1.8% = 1.8/100 = 0.018

x = number of years = 17 years

Let's go ahead and substitute the above values into the equation and solve for y;

`\begin{gathered} y=4.75(1+0.018)^(17) \\ y=\text{ \$6.43} \end{gathered}`