Question

Zeke is buying a rare car for 120,000. The dealership told Zeke that this car will gain interest at an annual rate of 1. 4% per year and he plans to sell the car after 10 years. How much will the car be worth after 10 years?

Part A: Write an Exponential Function to model the situation.


A(t)=

(

) ^ t




Part B: Round your answer to the nearest dollar.


After 10 years the car will be worth $

Answer 1

`\qquad \textit{Amount for Exponential Growth} \\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &120000\\ r=rate\to 1.4\%\to (1.4)/(100)\dotfill &0.014\\ t=\textit{elapsed time}\dotfill &10\\ \end{cases} \\\\\\ A = 120000(1 + 0.014)^(10) \implies A \approx 137898.90 ~\hfill \boxed{A=120000(1.014)^t}`