# An antique jar priced at 30,000 pesos Increases its value by 10% every Year, how Much will it cost after 5 years?

##### 3 Answers

48315.3 pesos

#### Explanation:

Equation for compound interest

where

A = Total amount (principal + interest)

P = Principal (start amount)

r = annual interest rate ( **decimal** i.e. 50% = **0.5**)

n = number of times interest is compounded per year

t = number of years of compounded increase

In this case

# = 48315.3

#### Explanation:

Cost of Antique jar

Annual rate of increase #= R = 10%3, compound interest

No. of years

Cost after 5 years

#### Explanation:

An increase of

This is therefore the common ratio. Each term is multiplied by

The sequence starts as: