Question

An art gallery owns a sculpture that is valued at $78,500. The gallery owner estimates that its value will increase by 5% every year. If the owner is correct, then how much will it be worth in 6 years? If necessary, round your answer to the nearest cent.

Answer 1

The equation is I=Prt so you you change the numbers, I=(78,500)(0.05)(6) which is $23,550 and you add this new price to the original price which is $102,050. The price would be worth $102,050