Question

A collector of rare books has a first-edition book worth $220, which he anticipates will grow in value at a rate of 10% per year. How much will this book be worth 10 years from now?

Answer 1

Answer:

In the next 10 years, the book will be worth $569.80.

Step-by-step explanation:

This is an exponential function. So use the formula A(t)=a(1+r)^t.

a= the initial amount

r= rate of growth (interest)

t= the time period

A(10)= 220( 1 + .10)^10

A(10)= 220(1.10)^10

A(10)= 220(2.59)

A(10)= 569.8