Question 31864
I DON'T HAVE THE ABILITY TO DRAW GRAPHS BUT YOUD PLOT YEARS ON THE X AXIS AND PRICE ON THE Y AXIS. YOUR FIRST POINT WOULD BE $350 AT YEAR 2 AND THE SECOND POINT AT $530 FOR YEAR 5. DRAW A STRAIGHT LINE THROUGH THESE POINTS AND CHECK THE PRICE AT THE 10 YEAR MARK WHICH WILL BE $830.


HERE'S THE ALGEBRAIC SOLUTION.
$530-$350=$180 THE INCREASE FOR THREE YEARS OR AN AVERAGE OF $60 PER YEAR FOR THE FIRST THREE YEARS. THEREFORE FOR THE NEXT 5 YEARS YOU WOULD EXPECT THE PRICE TO INCREASE 5X$60 OR $300 THEN THE PRICE WOULD BE $530+$300 OR $830
THE EQUATION IS ((530-350)/3)X(5)+530 OR (180/3)X(5)+530 OR (60X5)+530 OR
300+530=830