Question

Kobe has a pair of Jordans that are worth $24,000 in 2021. The shoe increases in price 5.5% per year. What is the show worth in 2041? (Use geometric summation).

Answer 1

The price of the worth of the shoes in 2041 is $836839.63

The geometric summation formula is:

`P((c^N-1)/(c-1))^{}`

Where P is the initial value, c is the growth of worth by period and N is the times of periods. In this case, the period is in years. 2041-2021=20. Then N = 20

now we calculate c:

`c=1+\frac{\text{percentage}}{100}=1+(5.5)/(100)=1.055`
`P((c^N-1)/(c-1))^{}=24000((1.055^(20)-1)/(1.055-1))=836836.63`