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


Starting price was 1950 and its value increases by 1.065 every year.

This is an exponential function given by:

#f(t)=1950 times 1.065^t#

Where #t# time is in years.
So putting t=15 yields:

#f(15)=1950 times (1.065)^15#

Which is approximately 5015 dollars.