SOLUTION: A painting was sold in 1985 for $ 2 million. The painting was then resold in 1996 for $ 8 million. Assume that the painting's value increases exponentially. Find the exponential gr

Algebra ->  Rate-of-work-word-problems -> SOLUTION: A painting was sold in 1985 for $ 2 million. The painting was then resold in 1996 for $ 8 million. Assume that the painting's value increases exponentially. Find the exponential gr      Log On


   

Question 1130865: A painting was sold in 1985 for $ 2 million. The painting was then resold in 1996 for $ 8 million. Assume that the painting's value increases exponentially. Find the exponential growth rate k, and determine the exponential growth function, assuming V0 = 2. (Round decimals to three places.)
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
V=V%5Bo%5De%5E%28kx%29

11 years time passage
8=2e%5E%2811k%29
Take Natural Logs of both sides and solve for k.

4=e%5E%2811k%29
ln%284%29=11k%2A1
highlight_green%28k=ln%284%29%2F11%29
highlight_green%28k=0.126%29