Question

#3 (1 pt) A certain baseball card is very rare and is currently worth $2000. If the price of this card increases by 3% a year,

write an exponential equation for how much the card will be worth x years from now.

Answer 1

$2000x(1.03)ˣ

Explanation:

This is known as compound interest.

100% + 3% = 103%, so we put this into a decimal: 1.03

We now put this into the equation:

$2000x(1.03)ˣ

If you want to work out the price after, say 3 years, then you would change x to 3, so the equation becomes

$2000x(1.03)³

You can then use a calculator to work out the answer.