Answer:
$6.43
Explanation:
The given problem can be solved using the exponential growth equation below;
[tex]y=a(1+r)^x[/tex]
where a = the initial cost in 2003 = $4.75
r = rate in decimal = 1.8% = 1.8/100 = 0.018
x = number of years = 17 years
Let's go ahead and substitute the above values into the equation and solve for y;
[tex]\begin{gathered} y=4.75(1+0.018)^{17} \\ y=\text{ \$6.43} \end{gathered}[/tex]
