Question

An antique car costs $32,000 It gains 8% in value every year. How much will it be worth in 6 years?

Answer 1

Each year, it's value is 1.08 of the previous price, so the equation is

$x=32000*(1.08^6)$

Using a calculator, you get that the answer is 50779.978. You must also round to the nearest hundredth because in our currency, cents are the smallest unit.

Therefore, an antique car that costs $32000 will be worth 50779.98 6 years after.