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ART Martin bought a painting for $5000. It is expected to appreciate at a continuous rate on

4%. How much will the painting be worth in 6 years? Round to the nearest.

User FTWinston
by
7.8k points

1 Answer

1 vote

Answer:


\$6,326.60

Explanation:

we know that

The equation of a exponential growth function is given by


y=a(1+r)^x

where

y is the value of the painting

x is the number of years

a is the initial value

r is the rate of change

we have


a=\$5,000\\r=4\%=4/100=0.04

substitute


y=5,000(1+0.04)^x


y=5,000(1.04)^x

How much will the painting be worth in 6 years?

For x=6 years

substitute the value of x in the equation


y=5,000(1.04)^6=\$6,326.60 ----> rounded to the nearest hundredth

User Seenukarthi
by
8.0k points

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