Question

A piece of artwork, purchased for $1500, increases in value by 8% each year,11) (3pt) Write an exponential function to represent the value of the artworkafter z number of years.12) (2pt) What will the artwork be worth in 10 years?

Answer 1

I think the answer is 3238.39

Answer 2

Let's begin by listing out the information given to us:

Cost (c) = $1500, interest (r) = 8% /annum

The equation for this is given by:

`\begin{gathered} y=c\cdot(1+r)^z\Rightarrow y=c(1+0.08)^z \\ c=\text{ \$1500, }r=0.08 \\ y=c(1.08^z)^{}=1500\cdot1.08^z \\ \\ z=10 \\ y=1500\cdot1.08^(10) \\ y=\text{ \$}3238.39 \end{gathered}`

11. The exponential function is given by: y = c * 1.08^z

12. The artwork is worth $3238.39