Question

Every year, the value of an antique vase appreciates by 20percent of it's value in the previous year. If the value of the vase was $180 000 in 2012,find it's value in 2010.

Answer 1

Answer:

Every year, the value of an antique vase appreciates by 20 percent of it's value in the previous year. If the value of the vase was $180 000 in 2012, its value in 2010 was $125000

Step-by-step explanation:

The formula for appreciation is given by:

V = X(1 + i)ⁿ

Where,

V = the current value

X = the original value

i = the rate of appreciation

n = the duration of appreciation

We have:

i = 20%

V = 180000

n = 2012 - 2010 = 2 years

Doing the substitution we have:

180000 = X(1.20)²

180000 = 1.44x

X = 180000/1.44 = 125000

The value of the vase is $125000