Question

The value of an antique chair is expected to increase by 3% every year. If the chair was bought for $1,020 in 2001, find its expected value in the year 2015, rounded to the nearest dollar.

Answer 1

A=1543

Explanation:

A=p (1+r)^t

P= 1020

R= 0.03

T = 2,015−2,001=14 years

A=1,020×(1+0.03)^(14)

A=1,542.8 round your answer to get

A=1543

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Answer 2

Hi there
The formula is
A=p (1+r)^t
A future value?
P present value 1020
R rate of increases 0.03
T time 2,015−2,001=14 years
So
A=1,020×(1+0.03)^(14)
A=1,542.8 round your answer to get
A=1543

Hope it helps