SOLUTION: PLEASE HELP A diamond is purchased for $2300 on 1/1/2002. Its value increases 5% each year. Find the value of the diamond on 1/1/2009.

Algebra ->  Sequences-and-series -> SOLUTION: PLEASE HELP A diamond is purchased for $2300 on 1/1/2002. Its value increases 5% each year. Find the value of the diamond on 1/1/2009.      Log On


   

Question 1078518: PLEASE HELP
A diamond is purchased for $2300 on 1/1/2002. Its value increases 5% each year. Find the value of the diamond on 1/1/2009.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +p+ = the purchase price
Let +v+ = the value of the diamond on 1/1/2009
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from 2002 to 2009 is +7+ years
+v+=+p%2A%28+1+%2B+.05+%29%5E7+
+v+=+2300%2A1.05%5E7+
+v+=+2300%2A1.4071+
+v+=+3236.33+
On 1/1/2009, the diamond will be worth
$3,236.33
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Get a 2nd opinion if needed