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.

$578.81
$607.75
$1687.50
$2531.25

Answer 1

B. 607.75

Explanation:

edg2021 hope this helps :>

Answer 2

$607.75

Explanation:

Exponential growth formula:

y = x(1 + r)^t

y = future value

x = present value

r = annual percent rate

t = time in years

y = 500(1 + 0.05)^4

y = 500(1.05)^4

y = 500(1.215506)

y = 607.75

Answer: $607.75