Question

You purchased a rare painting for $150 that is increasing in value by 3% annually. How many years will it take until it is doubled in value? Round to the nearest whole year

Answer 1

Answer:

23 years.

Step-by-step explanation:

It is given that the initial price of painting is $150 and its values increasing by 3% annually.

We need to find how many years will it take until it is doubled in value.

The value of painting after t years is given by

$y=150(1+0.03)^t$

$y=150(1.03)^t$

The value of painting after double is 300. Substitute y=300.

$300=150(1.03)^t$

Divide both sides by 150.

$2=(1.03)^t$

Taking log both sides.

$\log 2=\log (1.03)^t$

$\log 2=t\log (1.03)$

$t=\dfrac{\log 2}{\log (1.03)}$

$t=23.44977$

$t\approx 23$

Therefore, the required number of years is 23.