Concept explainers
To determine the average annual growth rate of price of stamp.
Answer to Problem 18P
The average annual rate growth is approximately 11.4%
Explanation of Solution
Given information:
Michael paid $250 ten years ago. Current value is $1000
We shall use the formula of appreciation,
We put the values from the question.
Here we have to find the rate
Initial value is
Hence we get,
Hence the average annual rate growth is approximately 11.4%
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Algebra and Trigonometry: Structure and Method, Book 2
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