This is a compound interest problem, therefore s(t) should be in the form:
[tex]s(t) = a(r)^{t} [/tex]
where:
t = time in years
s(t) = the value of your item after t years
a = the initial value of your item
r = rate
Therefore, we already know that a = 245$.
Now, we can calculate r:
[tex] r^{t}=\frac{s}{a}[/tex]
[tex]r = \sqrt[t]{ \frac{s}{a} } [/tex]
[tex]r = \sqrt[5]{ \frac{560.50}{245} } [/tex]
= 1.18
Therefore, the correct answers are a = 245 and r = 1.18
