Question

Belle inherited an antique teapot from her grandmother. The teapot's current value is $30 and

increases at a rate of 5% each year,
A: Write an equation that models the situation.
B: Find the value of the teapot in 20 years.

Answer 1

`\boxed{\$79.60}`

Explanation:

current value is $30

as it increases at a rate of 5% each year

after n year the value will be
`30(1.05)^(n)`

so for 20 years it will be
`30(1.05)^(20)`

it gives 79.59893 so we can round it to 79.60