Question

You purchase a piece of artwork for $32,000. The artwork increases 14% in value for ever year of ownership.

1) Determine the value of the art after 1 year.
2) Determine the after 3 years.

Answer 1

$36480 after 1 year, $45440 after 3 years

Explanation:

A = P(1 + rt)

where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods

A = 32000(1+ 0.14x1) = $36480

A = 32000(1+ 0.14x3) = $45440