The value of Dhanu's model railway is $550. This value increases exponentially at a rate of r% per year.
At the end of 5 years the value will be $736.

Calculate the value of r.

r = 5.83%

Step-by-step explanation:

Recall that the expression for exponential increase is:

where we can replace No with 550, N with 736 when t= 5

and then use natural logs to solve for "r" in the exponent:

which in percent form can be written as r = 5.83%