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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?

 Feb 28, 2018
 #1
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FutureValue = PresentValue ( 1 + i)^n      i = decimal interest (.04)    n = years

FV= 2500(1+.04)^x

FV=2500(1.04)^x

 Feb 28, 2018

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