Question

Carlos buys a vintage automobile for $7300. He estimates that the value will increase by 3% every year. Estimate the value of the automobile in ten years.

Answer 1

Answer:

$9810.59

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula: $\displaystyle A = P(1 + r)^t$

• P is principle amount
• r is rate
• t is time (in years)

Step-by-step explanation:

Step 1: Define

Identify variables

P = 7300

r = 3% = 0.03

t = 10

Step 2: Solve for A

1. Substitute in variables [Simple Interest Rate Formula]:                                 $\displaystyle A = 7300(1 + 0.03)^{10}$
2. (Parenthesis) Add:                                                                                            $\displaystyle A = 7300(1.03)^{10}$
3. Evaluate exponents:                                                                                         $\displaystyle A = 7300(1.34392)$
4. Multiply:                                                                                                              $\displaystyle A = 9810.59$