Question

A necklace is valued at £1200
It’s value is expected to increase by 4.5% per year over the next 3 years.
Calculate the expected value of the necklace after this time

Answer 1

You do 100+4.5 = 104.5
Then divide the answer by 100, so 104.5/100 = 1.045
You then do 1.045^3 x £1200 = £1369.39935 = £1369