A rare diamond, valued at $3,750, is gaining value at a rate of 4% each year. The value of a diamond, v, can be found using the equation v=p(1+r)t where p is the original value of the diamond, r is the rate, and t is the number of years the diamond gains value.
How much will the diamond be worth in 6 years?
$4,743.75
$4,744.95
$4,762.50
$4,875.00