Luis purchases a collectible model car from a dealer. the dealer advises him that the car’s value (the car value is $75 now) will grow by about 9% each year. what is the estimated value of the model car after 10 years?

$178

Step-by-step explanation:

We know that the exponential growth equation with rate of growth r in time period x is given by :-

, A is the initial value .

Given: The initial value of car = $75

Rate of growth : 9%=0.09

Now, the function represents the car's value after x years is given by ;-

Thus, the value of the model car after 10 years is given by :-

  [To the nearest dollar]

Hence, the estimated value of the model car after 10 years = $178