Question

Martin bought a painting for $5000. It is expected to appreciate at a continuous rate of 4%. Write an exponential equation to model this situation

Answer 1

y=5000(1.04)^t

Explanation:

Given data

Cost of painting=$5000

Rate of increase=4%

the exponential increase expression is

y=P(1+r)^t

Where y= the total amount after growth

P= the initial cost of the painting

r= the rate of increase

t= the time interval

y=5000(1+0.04)^t

y=5000(1.04)^t