Answer:
$5921
Step-by-step explanation:
The formula for the future value (FV) of an asset is the same as the formula for compound interest:
FV = PV(1 + r)ⁿ
where
PV = the present value
r = the interest rate
n = number of years
Data:
PV = $4000
r = 4 %
n = 10 yr
Calculations:
A = 4000(1+ 0.04)¹⁰
= 4000 × 1.04¹⁰
= 4000 × 1.4802
= $5921
The sculpture will be worth $5921 in ten years.
