The value of a rare painting has increased each year since it was found at a garage sale. The value of the painting is modeled by the function f(x) = 799(1.03)x. What does the 799 represent? What will the painting be worth after 5 years? Round your answer to the nearest dollar.
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Value of the painting f(x) = 799(1.03)x (Given)
Time = t=5 (Given)
According to the concept of simple interest -
A = P (1+r)~t
where P is the present amount or principal, t is the time, r is the rate and A is the final amount which representes the original cost
After 5 years
Therefore,
A =799(1.03)^5
A=926.26
Thus, the painting after five years will be worth $926.2
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