SOLUTION: Susan purchased a painting in the year 2000 for $4000. Assuming an exponential rate of inflation of 3.1% per year, how much will the painting be worth 8 years later?

SOLUTION: Susan purchased a painting in the year 2000 for $4000. Assuming an exponential rate of inflation of 3.1% per year, how much will the painting be worth 8 years later?

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Question 1103561: Susan purchased a painting in the year 2000 for $4000. Assuming an exponential rate of
inflation of 3.1% per year, how much will the painting be worth 8 years later?

Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
FV=Pe^rt, where FV is future value,P is the principal,r is the rate of return, and t is time. So:
FV=4000e^.031(8)=4000*e^.248
FV=$5125.84
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