Answer:
0.37 or 37%
Step-by-step explanation:
I believe you meant to put [tex]V(t)=24300(1.37)^t[/tex]
The key thing here is look at the rate and we can do so by looking at the equation:
[tex]A_{final}=A_{initial}(1+r)^t[/tex]
Where the initial amount the car was worth was $24,000. Now focus on the middle part of the equation (1 + r), 1 in this case means 100% of what the car is worth plus the interest rate. Simply put, to find out the rate we just need to subtract 1.37 - 1 = 0.37, meaning 37% (since 0.37 × 100 = 37%). This means that the car will increase in value by 37% every year, which is ridiculous!
