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?

1. y = 500(0.05)x
2. y = 500(1.05)x
3. y = 500(0.1025)x
4. y = 500(1.1025)x

Option 2 is correct.

Step-by-step explanation:

Actual price = $500

After 2 years the worth of item is increased to = $551.25

We need to find the equation that represents y, the value of the item after x years.

According to given information the equation can be of form

where r represents the growth and x represents the number of yeras.

We need to find the value of r that represents the growth

The value of y = 551.25, and value of x = 2

Putting values and solving:

Putting value of r in the equation

So Option 2 is correct.

a

step-by-step explanation: