Question

A baseball card that was valued at $200 in 1980 has increased in value by 7% each year. Write a function to model this situation, then find the value of the card in 2016

Answer 1

$2284.6

Explanation:

Given data

Principal= $200

Rate= 7%

Time= 1980-2016= 36 years

The expression for the exponential model is given as

A= P(b)^t

b=1+r-----------because will are dealing with increase

A= P(1+r)^t

A=200(1+0.07)^36

A= 200(1.07)^36

A= 200*11.423

A=$2284.6

The value of the card is $2284.6