Question

A baseball card bought for $50 increases in value by 3% each year. How do you write an exponential function to model its value. Then find its value after 5 years?

Answer 1

See explanation

Explanation:

Let the principle sum be `P`
Let the number of years be `n`

Thus the total sum for n years is:

`P(1+3/100)^n" " ->" " P(103/100)^n`

`$50(103/100)^5 = $57.96" "` to 2 decimal places