Question

An art gallery owns a sculpture that is valued at $63,220. The gallery owner estimates that its value will increase by 9% every year. If the owner is correct, then how much will it be worth in 9 years?If necessary, round your answer to the nearest cent

Answer 1

The amount it will worth in 9 years is $137307.09

STEP - BY - STEP EXPLANATION

What to find?

The amount it worth in 9 years.

Given:

Iniial value (a) =$ 63, 220

rate (r) = 9% = 0.09

time(t) = 9

Using the formula below:

$y=a(1+r)^t$

where y is the amount in 9 years.

Substitute the value and evaluate.

$y=63220(1+0.09)^9$$=63220(1.09)^9$$\approx137307.09$

Hence, it will be $137307.09 worth in 9 years.