Question

You bought a baseball card for $5. It appreciates 5% every year. How much will the card be worth after 38 years?

Answer 1

$ 31.925

Explanation:

Final Value = a (1+r)^n

a = initial amount, r = appreciation rate, n = no. of time periods

a = 5 , r = 5% = 0.05 , n = 38

5 (1+0.05)^38

5 (1.05)^38

5 (6.385)

= 31.925