Question

Your collectable cards are worth $1,200. Each year they grow in value by 3%. How much will your cards be worth after 13 years? Round your answer to the nearest dollar.

Answer 1

To calculate the future value of your collectable cards after 13 years, use the compound interest formula. Plugging in the given values, the cards will be worth $1,801 after 13 years.

Step-by-step explanation:

To calculate the future value of your collectable cards after 13 years, you can use the compound interest formula:

Future Value = Present Value × (1 + Interest Rate)^Number of Years

In this case, the Present Value is $1,200, the Interest Rate is 3% (0.03), and the Number of Years is 13. Plugging these values into the formula:

Future Value = $1,200 × (1 + 0.03)^13

Calculating this gives you a Future Value of $1,800.50. Rounded to the nearest dollar, your cards will be worth $1,801 after 13 years.