The price of a certain commodity increased at a rate of x% each year between 2000 and 2004. If the price was M dollars in 2001 and N in 2003, what was the price in terms of M and N?
N * sqrt(N/M)
N * sqrtM
N * M^(3/2)
Can someone show me the approach? not sure where to start
Whats the question? which year's price you want to know?
Year 2000 - A
Year 2004 - B
Let X be the price in 2000. r be the rate of interest. Then, the price in subsequent years is:
X(1+r/100), X(1+r/100)^2, X(1+r/100)^3,
This can be written as: Xq, Xq^2, Xq^3......
This is a Geometric sequence.
You know the 2nd and 4th term. You can find the common ratio and then the first term.
From this, you can find any term.
Hope that helps!