Answer: Annual rate of growth is 5.18%.
Step-by-step explanation:
Since we have given that
In 1968, Bryan purchased a Corvette = $4600
In 2018, Corvette now has an appraised = $57500
According to question, we need to find the annual growth rate:
As we know the formula for "Compound interest":
[tex]A=P(1+\frac{r}{100})^n\\\\57500=4600(1+\frac{r}{100})^{50}\\\\\frac{57500}{4600}=(1+\frac{r}{100})^{50}\\\\12.5=(1+\frac{r}{100})^{50}\\\\r=5.18\%[/tex]
Hence, Annual rate of growth is 5.18%.
