Question

Mike paid $\$1.25$ for a stamp three years ago. He was just offered double that amount for the stamp. Assuming the stamp's offer price doubles every three years, how many dollars will he be offered in 12 more years

Answer 1

Answer: $40

Explanation:

If the worth of the stamp is double that of its original price 3 years ago ($1.25), the current price of the stamp should be $2.50. If that doubles every 3 years the answer should look something like this:

3 years: $5 (2.50X2=5)

6 years: $10 (5X2=10)

9 years: $20 (10X2=20)

12 years $40 (20X2=40)

In 12 years the stamp will be worth $40.