Question

Jackson has a vintage comic book worth $400. According to a dealer, the value of this particular comic book will increase by 10% each year. how much will the comic book be worth in 9 years if necessary, round your answer to the nearest cent

Answer 1

$943.18

Step-by-step explanation

The value of the comic book has an exponential growth, which formula is:

`y=a(1+r)^t`

Where a is the inital cost, r is the increase rate and t is the time in years.

For this problem: r = 0.1, t = 9 and a = 400. After 9 years, the cost is:

`y=400\cdot(1+0.1)^9=400\cdot1.1^9\approx943.18`