[tex]\large{\rm{\underline{\underline{Answer:}}}}[/tex]
In Direct formula method:
If the rate of appreciation r, the initial value I, the final value V, and the period of appreciation n, the formula for appreciation is given by:
V = I(1 + r)ⁿ
In our case, we need to work out the value of n which is number of years in between 2010 and 2012.
So, n = 2012 - 2010 = 2 years
Put the values we have:
⇛180000 = I(1.20)² [ Increases 20% every year ]
⇛180000 = 1.44I
⇛I = 180000/1.44
⇛I = 125000
So, in 2010, the value of the vase was $125000
⛱️ Another way of doing it is in the attachment!!
