Question

When a famous artist was just beginning her career, she sold a painting for $250. Her artwork has been increasing in value by 15% every year as her popularity has grown. If this rate continues, how much will the painting be worth in 10 years? Round your answer to the hundredths place if needed.

A: $1,011.39

B: $1,442.00

C: $117,397.08

D: $2,875.00

Answer 1

$1,011.39

Explanation:

Using the exponential function;

A = P(1+r)^n

A = 250(1+0.15)^10

A = 250(1.15)^10

A = 250(4.0456)

A = 1,011.39

Hence the amount after 10 years is $1,011.39