The value of a collector’s item is expected to increase exponentially each year. the item is purchased for $500. after 2 years, the item is worth $551.25. which equation represents y, the value of the item after x years? y = 500(0.05)x y = 500(1.05)x y = 500(0.1025)x y = 500(1.1025)x

Step-by-step explanation:

We know that the general exponential equation to find the value after x years is written as :-

, where A is the initial value and b is the multiplicative rate of change and x is the time period.

Given : The initial amount of a product = $500

After 2 years, the item is worth $551.25.

Substitute A = 500, x=2 and y= 551.25 in the above equation we get

Now, substitute b= 1.05, A = 500 in the general exponential equation, we get the equation represents y, the value of the item after x years as :-