Question

A sculpture is increasing in value at a rate of 8% per year, and its value in 2000 was $1200. Write an exponential growth function to find the sculpture's value in 2006.

Answer 1

The sculpture's value in 2006 can be found using the exponential growth formula.

Step-by-step explanation:

To find the sculpture's value in 2006, we can use the exponential growth formula: V = P(1 + r)^t, where V is the final value, P is the initial value, r is the growth rate, and t is the number of time periods.

In this case, the initial value is $1200, the growth rate is 8% or 0.08, and the number of time periods is 2006 - 2000 = 6 years.

Plugging these values into the formula, we get V = 1200(1 + 0.08)^6 = $1749.85. Therefore, the sculpture's value in 2006 is approximately $1749.85.