Question

You buy a commemorative coin for $110. Each year, t, the value V of the coin increases by 4%

Part a: Write a function that can be used to find the coin’s value after t years.
Part b: If the coin’s value continues to grow 4% per year, what will the approximate value be in 8 years? Round to two decimal places.

Answer 1

$136.86

Explanation:

Answer 2

a. f(x)= 100*1.04^t
Exponential functions follow the form of y=ab^x, where a is the principal amount, b is the rate of growth or decay (1+0.04), and x is the time.

b. f(8)= 100*1.04^8
100*1.368569...
136.856

Final answer: $136.86