Question

Beckett purchase the diamond ring in 2012 for $12,000 if the value of the rain increases by 32% each year what will the ring be worth in 2040

Answer 1

Answer:

$119520

Step-by-step explanation:

Given: Purchase price of Diamond ring= $12000

           Value of ring increase by 32% each year.

 

First finding number of year between 2012 and 2040, to know the time period of value appreciation.

Time period= $2040-2012= 28\ years$          

∴ Time period of value appreciation is 28 years.

Now, finding the value of diamond ring increased after 28 years.

Value of ring increased after 28 years= $\frac{12000\times 32\times 28}{100}$

∴ Increased value of diamond ring after 28 years= $107520

Next, Value of diamond ring after 28 years= $12000+107520= \ 119520$

Hence, value of diamond ring in 2040 is $119520