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Mia has a collection of vintage action figures that is worth $190. If the collection appreciates at a rate of 6% per year, which equation represents the value of the collection after 5 years?

2 Answers

3 votes

Answer: 254.26

Step-by-step explanation:

User David Andres
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The equation that represents the value of the collection after 5 years is:

Value of collection after 5 years = 190 x (1 + 0.06)^5

Step-by-step explanation:

To calculate the value of the collection after 5 years, we need to use the compound interest formula. This formula is represented as A = P x (1 + r)^n, where P is the principal amount (initial value of the collection), r is the rate of interest (in this case, 6%), and n is the number of years (in this case, 5).

Therefore, the equation for the value of the collection after 5 years is:

Value of collection after 5 years = 190 x (1 + 0.06)^5

This can also be written as:

Value of collection after 5 years = 190 x 1.31 (1.31 is the result of (1 + 0.06)^5)

Therefore, the value of the collection after 5 years is $246.90.

User Matthias Braun
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