The 1997 a value of an object was $5000. In 2012, it was worth $9500. The annual percent growth has been constant. What is the annual percent growth?

Solution:

The increasing function is given as:

Where,

y is future value

a is initial value

r is growth rate

t is number of years

From given,

a = 5000

y = 9500

t = 1997 to 2012 = 15 years

r = ?

Substituting the values we get,

Thus annual percent growth is 4.37 %

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