bmwhype2 wrote:

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?

sqrt(MN)

N * sqrt(N/M)

N * sqrtM

N* M/sqrtN

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

Approach:

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!