The value of a vinyl record that Katie purchased in 2016 was $42.20. The value of the record was expected to increase by 3.25% per year. What is the projected value of the vinyl record in 2018?
Question
Question
The value of a vinyl record that Katie purchased in 2016 was $42.20. The value of the record was expected to increase by 3.25% per year. What is the projected value of the vinyl record in 2018?
The value of a vinyl record that Katie purchased in 2016 was $42.20. The value of the record was expected to increase by 3.25% per year.
What is an exponential function?
Let the value of the record after x years is given as,
y = 42.20 [1 + 0.0325]ˣ
Where x = year – 2016
Now put year = 2018
x = 2
y = 42.20[1.0325]²