Problema Solution
Mira bought $300 of freerange wireless stock in january of 1998. The value of the stock is expected to increase by 7.5% per year. Use a graph to predict the year the value of Mira's stock will reach $700
Answer provided by our tutors
The function y that describes the value of the stocks is:
y = 300(1 + 0.075)^x, where x is the number of years
We need to read from the graph the value of x when y = 700.
For x = 12 years approximately the value of the stock will be y = $700.