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Diamonds have risen in value so that a perfect 10 carat diamond worth $750,000 in 2005 was worth $1,950,000 in 2013.

Diamonds have risen in value so that a perfect 10 carat diamond worth $750,000 in 2005 was worth $1,950,000 in 2013.Find an equation in the form V(t)=V 0 (1 + r) t where V 0 is the value of the diamond in 2005, r is annual growth rate, t is time in years since 2005 and V(t) is the value of the diamond in dollars at the time t. What is the interpretation for the value of r? What will the diamond be worth in 2020?

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a) The annual growth rate is 12.6 % b) The... View the full answer

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