So an exponential equation is gonna be used for this problem. The formula for such is [tex]y=ab^x[/tex] , in which the a variable is the initial value and the b variable is the growth/decay rate.
For this situation, 1200 is gonna be your a variable since you've started out with it. And as for your b variable, its gonna be 107.3%, or 1.073, since it's increasing.
Your equation should look like this: [tex]y=1200(1.073)^x[/tex] and from here just plug in 10 into the x variable and solve.
Multiply (1.073)^10 (don't round answers until the end), and take that answer and multiply it with 1200, your answer should be $2427.61.
[tex]y=1200(1.073)^{10} \\ y=2427.61[/tex]
