Question

Tyler purchased a vintage video game for $60. The value of the video game is expected to increase by 4% each year. How much will the video game be worth after two years?

Answer 1

Answer:

price =$60

rate of % rise =4%

Time = 2 years

S.I. = PxRxT/100

SI = 60x4x2/100 = $4.8 more

price+SI = cost of video game after 2 years

60+4.8 = $64.8 will be the price of video game after two years (as calculated by S.I.)

(As per CI) (if asked in question)

CI + Principle = price after two years

CI = 4.896

60+4.896 = $64.896 will be the price of video game after two years (as calculated by C.I.)