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blagie [28]
4 years ago
6

An Impressionist painting increases in value

Mathematics
1 answer:
jok3333 [9.3K]4 years ago
5 0

Answer:

A = $8406.6

Step-by-step explanation:

Given:

Average rate r=9\%

Initial cost of painting a = \$1500

Time t = 20\ years

We need to find the final amount of painting at the end of a 20-year.

Solution:

Using Exponential Growth rate formula as:

A = a(1+r)^t  ----------(1)

Where:

A = Final amount

a = Initial amount.

r = Rate as a decimal.

t = Time.

Now, we substitute all given values in equation 1.

A = 1500(1+0.09)^{20}

A = 1500(1.09)^{20}

Substitute 1.09^{20} = 5.60 in above equation.

A = 1500\times 5.60

A = $8406.62

Therefore, value of the  painting at the end of  a 20-year A = $8406.6

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