Question

Question 3) Marilyn collects old dolls. She purchases a doll for $450. Research shows this doll's value will increase by 2.5% each year.
Assuming the doll's value will increase the same rate every year, what will be the value of the doll after 20 years, rounded
to the nearest dollar?
obe
A
$737
te
B
$1,125
otel
C
$9,225
obel
D
S39,031


PLEASEEE HELP ASAP

Answer 1

This is an exponential growth problem that uses the formula P = A(1+r)^t

A is the starting value, r is the rate of increase and t is the amount of time.

Replace the letters with the given information:

P = 450(1 + 0.025)^20

P = $737.38

Rounded to the nearest dollar = $737