# 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.