Question

The value of a gold coin picturing the head of the Roman Emperor Vespasian is increasing at the rate of 5% per year. If the coin is worth $105 now, what will it be worth in 11 years?

Answer 1

255.75

Explanation:

Answer 2

$179.59

Explanation:

Step 1 Write the exponential growth function for this situation.

y = a(1 + r)t Write the formula.

= 105(1 + 0.05)t Substitute 105 for a and 0.05 for r.

= 105(1.05)t Simplify.

Step 2 Find the value in 11 years.

y = 105(1.05)t Write the formula.

= 105(1.05)11 Substitute 11 for t.

≈ 179.59 Use a calculator and round to the nearest hundredth.