We are given a value function, V(t). Notice that t = years since 1991. Evaluate for the year 2000.
Value = V(t) = 461,100(1.12)t
Examine the equation above:
What is the annual interest rate?
What is the initial value of the card?
Unlike average value (AROC), actual value (IROC) must be found with a derivative.
Let V '(t) = your answer in part (b).
The card was worth its average value in 1995 or 1996.