Question

Frank has a vintage comic book worth $454. According to a dealer, the value of this particular comic book will increase by 15% each year. How much will the comic book be worth in 2 years?If necessary, round your answer to the nearest cent.

Answer 1

Given:

Current worth = $454

Rate of increase = 15% = 0.15

Time = t

To find how much the book will be worth in 2 years, apply the exponential growth formula:

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

Where:

a is the current worth = 454

r is the rate of increase = 0.15

t is the time = 2 years

Hence, we have:

$\begin{gathered} y=454(1+0.15)^2 \\ \\ y=454(1.15)^2 \\ \\ y=454(1.3225) \\ \\ y=600.42 \end{gathered}$

Therefore, the worth of the comic book in 2 years is $600.42

ANSWER:

$600.422 ye