Question

Omar buys an antique cup for $100. Each year, the cup's value increases by 3.2%.

Write an equation using the keypad that can be used to find the value, b, in dollars, of the antique cup after t years.

Answer 1

`b=100\cdot 1.032^t`

Explanation:

The value b, in dollars, of the antique cup after t years can be modelled using the exponentia growth function

`b=I\cdot (1+r)^t,`

where

I = inittial cost of the antique cup,

r = rate of increase (given as decimal)

In your case,

I = $100

r = 0.032 (3.2% written as decimal),

so the function is

`b=100\cdot (1+0.032)^t\\ \\b=100\cdot 1.032^t`