The initial value of a stock is $2500. The value of the stock is expected to grow at an annual 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.

What equation models the value of the stock x years after it was made available?

adore.nuk Feb 28, 2018

#1**+2 **

FutureValue = PresentValue ( 1 + i)^n i = decimal interest (.04) n = years

FV= 2500(1+.04)^x

FV=2500(1.04)^x

ElectricPavlov Feb 28, 2018