Answer:
A = $8406.6
Step-by-step explanation:
Given:
Average rate [tex]r=9\%[/tex]
Initial cost of painting [tex]a = \$1500[/tex]
Time [tex]t = 20\ years[/tex]
We need to find the final amount of painting at the end of a 20-year.
Solution:
Using Exponential Growth rate formula as:
[tex]A = a(1+r)^t[/tex] ----------(1)
Where:
A = Final amount
a = Initial amount.
r = Rate as a decimal.
t = Time.
Now, we substitute all given values in equation 1.
[tex]A = 1500(1+0.09)^{20}[/tex]
[tex]A = 1500(1.09)^{20}[/tex]
Substitute [tex]1.09^{20} = 5.60[/tex] in above equation.
[tex]A = 1500\times 5.60[/tex]
A = $8406.62
Therefore, value of the painting at the end of a 20-year A = $8406.6
