A. $40, because you would do 1,000 × 1.04 = $1,040, and then subtract the original $1,000.
b. $81.60, because 1,000 × 1.04² = 1,081.6
c. $480.24, because 1,000 × 1.04^10 = 1,480.24.
I have used the formula for compound interest presuming you were aware of it, but I will be happy to explain what I did if you want :).
I hope this helps!
Answer:
First one: C. Second One:C.
Step-by-step explanation:
Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years?
a) $13,935.76
b) $12,874.57
c) $13,792.99
To solve this this is an exponential function. The price started at $23,000 and depreciates at 12% so the equation is f(x) = (23,0000)(1-0.12)^4. When calculated results with 13792.99328 which is C.
A rare coin is currently worth $450. The value of the coin increases 4% each year. Determine the value of the coin after 7 years.
a) $613.98
b) $546.78
c) $592.17
To solve this this is also an exponential function. The price started at $450 and the coin increases 4% each year so the equation is f(x) = (450)(1+0.04)^7. When calculated results with 592.169300656 which is c.
