Answer:(c)
Step-by-step explanation:
Given
The initial value of Adam's model is [tex]A_o=\$550[/tex]
the value increases exponentially with the rate of [tex]r\%[/tex]
Time period [tex]t=5\ years[/tex]
Final amount [tex]A=\$736[/tex]
Exponential growth is given by
[tex]\Rightarrow A=A_o(1+r)^t[/tex]
Putting values
[tex]\Rightarrow 736=550(1+r)^5\\\\\Rightarrow (1+r)^5=1.338[/tex]
[tex]\Rightarrow 1+r=1.05999\\\Rightarrow r=0.05999\ or\ 5.99\%\approx 6\%[/tex]
Option (c) is correct
