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advanced-mathAn antique increases in value by 12% per year. If currently worth $5,000, what will it be worth in 10 years?
A
$15,529.24
B
$11,000.00
C
$20,000.00
D
$6,000.00
Correct Answer: A
Choice A is the correct answer. Apply exponential appreciation.
- Formula: where .
- Calculate: .
- Result: Value ≈ $15,529.24.
💡 Strategic Tip: 12% growth means multiplying by 1.12 each year.
Choice B is incorrect because this assumes simple interest (5000 + 6000). Choice C is incorrect because this growth is too high. Choice D is incorrect because this is only 1 year of growth.