Respuesta :
Answer:
y = ($2500)(1.04)^x
Step-by-step explanation:
The initial value = $2500
The value of the stock is expected to grow at the rate of 4%
Let x represent the number of years since the stock was made available for purchase.
Let y represent the value of the stock x years later.
y1 = amount of money after one year.
y1 = $2500 (100% + 4%)
y1 = $2500 (104%)
y1 = $2500(1.04)
y2 = amount of money after two years
y2 = y1 (100% + 4%)
y2 = y1 (104%)
y2 = y1(1.04)
y2 = $2500(1.04)(1.04)
y2 = $2500(1.04)^2
This will give a pattern
y5 = $2500(1.04)^5
After x years the model of the equation will be y = ($2500)(1.04)^x
Answer:
Step-by-step explanation:
Initial value of the stock is $2500 This means that the principal is
P = 2500
The value of the stock is expected to grow at an annual rate. This means that it grew once in a year. So
n = 1
The rate at which the stock grew is 4%. So
r = 4/100 = 0.04
x represent the number of years since the stock was made available for purchase.. So
t = x
The formula for determining the value of the stock x years later would be
A = P(1+r/n)^nt
A = total value of the stock x years later. Let y represent the value of the stock x years later. Therefore,
y = 2500 (1+0.04/1)^1×x
y = 2500(1.04)^x
