Question

Beckett purchase the diamond ring in 2012 for $12,000 if the value of the rain increases by 32% each year what will the ring be worth in 2040

Answer 1

$119520

Explanation:

Given: Purchase price of Diamond ring= $12000

Value of ring increase by 32% each year.

First finding number of year between 2012 and 2040, to know the time period of value appreciation.

Time period=
`2040-2012= 28\ years`

∴ Time period of value appreciation is 28 years.

Now, finding the value of diamond ring increased after 28 years.

Value of ring increased after 28 years=
`(12000* 32* 28)/(100)`

∴ Increased value of diamond ring after 28 years= $107520

Next, Value of diamond ring after 28 years=
`12000+107520= \$ 119520`

Hence, value of diamond ring in 2040 is $119520