The value of an early American coin increases in value at the rate of 6.5% annually. If the purchase price of the coin this year is $1,950, what is its value to the nearest dollar in 15 years?
1 Answer
Apr 5, 2018
5015 dollars
Explanation:
Starting price was 1950 and its value increases by 1.065 every year.
This is an exponential function given by:
Where
So putting t=15 yields:
Which is approximately 5015 dollars.
