An art gallery owns a sculpture that is valued at 34,055. The gallery owner estimates that its value will increase by 6% every year. If the owner is correct, then how much will it be worth in 15 years?

Solution

implicit derivative

a r t g a ll ery o w n s a sc u lpt u re t ha t i s v a l u e d a t 34, 055. T h e g a ll ery o w n er es t ima t es t ha t i t s v a l u e w i ll in cre a se b y 6% e v ery ye a r . I f t h e o w n er i s correc t, t h e n h o w m u c h w i ll i t b e w or t h in 15 ye a rs ?

Principal : 17923.68

Solution steps

Translate the problem into an equation:

34055 = P (1 + 0.06 \cdot 15)

Solve for

P, 34055 = P (1 + 0.06 \cdot 15) : P = 17923.68

Principal : 17923.68