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Solve the Problem $2857\$ 2857 In Year 0, the Initial Investment Year

Question 255

Multiple Choice

Solve the problem.
-An investment is worth $2857\$ 2857 in year 0, the initial investment year. By year 4 its value has increased to $3373\$ 3373 . Let yy be the value of the investment in the year xx . Find and interpret the average rate of change in value per year.


A) - $129\$ 129 per year; the value of the investment decreases by $129\$ 129 per year during these years.
B) $2857\$ 2857 per year; the value of the investment increases by $2857\$ 2857 per year during these years.
C) $129\$ 129 per year; the value of the investment increases by $129\$ 129 per year during these years.
D) $3889\$ 3889 per year; the value of the investment increases by $3889\$ 3889 per year during these years.

Correct Answer:

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