Posted in collectables by admin
on September 30, 2009
exponential increase question help please!!?
the 50% bluenose is one of canada’s most famous postage stamps. in 1930 it could be bought at the post office for 50cents. In 1987 a superb copy was sold at an auction for $500. what annual rate of interest corresponds to an investment of 50 cents in 1930 which grows to 500 in 1987
the answer is 12.9% but im not sure how to get this answer
set up growth rate equation and plug in known values
.5(1+r)^47 = 500
use logs to solve
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