Question

Carlos buys a vintage automobile for $7300. He estimates that the value will increase by 3% every year. Estimate the value of the automobile in ten years.

Answer 1

$9810.59

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula:
`\displaystyle A = P(1 + r)^t`

• P is principle amount
• r is rate
• t is time (in years)

Explanation:

Step 1: Define

Identify variables

P = 7300

r = 3% = 0.03

t = 10

Step 2: Solve for A

1. Substitute in variables [Simple Interest Rate Formula]:
   `\displaystyle A = 7300(1 + 0.03)^(10)`
2. (Parenthesis) Add:
   `\displaystyle A = 7300(1.03)^(10)`
3. Evaluate exponents:
   `\displaystyle A = 7300(1.34392)`
4. Multiply:
   `\displaystyle A = 9810.59`