Question

Cindy found a collection of baseball cards in her attic worth $8,000. the collection is estimated to increase in value by 1.5% per year. write an exponential growth function and find the value of the collection after 7 years

Answer 1

a]
Exponential function is given by the form:
y=a(b)ˣ
where:
a=initial value
b=growth factor
From the question:
a=$8000, b=1.015, 
thus the exponential growth function of this situation is:
y=8000(1.015)ˣ

b] The value of the collection after 7 years will be:
x=7 years
Using the formula:
y=8000(1.015)ˣ
plugging the values we get:
y=8000(1.015)⁷
y=8,878.76

Answer: $8,878.76