Question

The value of an antique chair is expected to increase by 3% every year. If the chair was bought for $1,020 in 2001, find its expected value in the year 2015, rounded to the nearest dollar.

Answer 1

Hi there
The formula is
A=p (1+r)^t
A future value?
P present value 1020
R rate of increases 0.03
T time 2,015−2,001=14 years
So
A=1,020×(1+0.03)^(14)
A=1,542.8 round your answer to get
A=1543

Hope it helps