Question

Yolanda has a an antique vase that is worth $4800. The vase is increasing in value at a rate of 2% every year. What will be the value of the vase in 20 years?

A. $7132.55
B. $5851.17
C. $12,524.38
D. $4950.72

Answer 1

$4800 is your starting number
it increases 2% every year
how much will it be in 20 years

Formula= ab^x
a is always the starting number
b is the percentage
x is always the length of time

y=4800([this is where it gets tricky])

I never understood why but you have to put 1.02 if increasing and .02 if decreasing.

y=4800(1.02)^20 [20th place(exponent)]

y= $7132.55

A

Answer 2

The answer is A. 7132.55.    4800(1.02)^20