Question

Moussa has a collection of vintage action figures that is worth $390. If the collection appreciates at a rate of 3% per year, which equation represents the value of the collection after 3 years?​

Answer 1

To represent the value of the collection after 3 years if it appreciates at a rate of 3% per year, we can use the following equation:

V = P(1 + r)^t

Where:

V = the value of the collection after 3 years

P = the initial value of the collection, which is $390 in this case

r = the annual appreciation rate, which is 3% or 0.03 as a decimal

t = the number of years, which is 3 in this case

Substituting the given values, we get:

V = $390(1 + 0.03)^3

Simplifying the equation, we get:

V = $390(1.03)^3

V = $390(1.0927)

V = $426.99 (rounded to the nearest cent)

Therefore, the equation that represents the value of the collection after 3 years if it appreciates at a rate of 3% per year is:

V = $390(1.03)^3

V = $426.99