A painting is purchased for $10,000 in 2000 increased in value by 8% per year. Find its value in 2004.
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Answer:
13,604.88
Step-by-step explanation:
10,000*(1.08)^4 is the answer.
The painting was purchased in 2000 so there is 4 years passed till 2004.
The interest rate is 8% that is 8/100.
So you use the formula,
Future value = Present value*(1+interest rate)^n
where n is number of years.
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