Problem: A co. was stated in 1958 with $4000 and sold in 1998 for $14,000,000.
Find annual percentage increase in the value of this co., over the 40 years.
Please view/comment on solution I came up with (class is learning formulas
P = Po A ^t + P = Po e ^kt); but I feel that I may have not accurately answered as to the annual percentage increase:
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P = Po A ^ t; so set up based on amounts I did have [P = 14,000,000;
Po = 4000; and t = 1998-1958 = 40)
14, 000,000 = 4000(A)^40 (factor out 4000/both sides of equation)
3500 = a^40 (flip equation)
a = 3500 ^1/40
a = 1.23
Problem equation would be: P = 4000 (1.23)^t
Percentage:
If R = A -1 (1.23 -1);
the R = .23 or 23%
Find annual percentage increase in the value of this co., over the 40 years.
Please view/comment on solution I came up with (class is learning formulas
P = Po A ^t + P = Po e ^kt); but I feel that I may have not accurately answered as to the annual percentage increase:
============================
P = Po A ^ t; so set up based on amounts I did have [P = 14,000,000;
Po = 4000; and t = 1998-1958 = 40)
14, 000,000 = 4000(A)^40 (factor out 4000/both sides of equation)
3500 = a^40 (flip equation)
a = 3500 ^1/40
a = 1.23
Problem equation would be: P = 4000 (1.23)^t
Percentage:
If R = A -1 (1.23 -1);
the R = .23 or 23%
