Question

Joshua’s Babe Ruth baseball card is worth 500,000. If the value continues to grow by 2% each year, how much will the card be worth in 5 years?

A.$512,11963
B.$552,040.40
C.$4,852,055.65

Answer 1

$550,000

Explanation:

You need to find 2% of 500,000 first.

2 x 500,000 = 1,000,000

1,000,000 ÷ 100 = 10,000.

It increases value by 10,000 dollars each year

5 x 10,000 = 50,000.

It will be worth 550,000 dollars in 5 years.

I hope thats answer choice D, sorry if I am wrong.