Question

You purchased a baseball card for S8 when you were 10 years old. The value of the card increased by 5% each year.

Write an exponential model that gives the value y (in dollars) of the card t years after you purchased it.

Answer 1

y = $8(1.05)^t

Explanation:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = rate of increase

N = number of years

y = $8(1.05)^t