# 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: $f \left(t\right) = 1950 \times {1.065}^{t}$Where $t$time is in years. So putting t=15 yields: $f \left(15\right) = 1950 \times {\left(1.065\right)}^{15}$$f \left(15\right) = 5015.089963\$

Which is approximately 5015 dollars.