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April 16, 2014

April 16, 2014

Posted by **Cat** on Monday, March 9, 2009 at 8:20pm.

The historical society tells him that furniture similar to his has been appreciating in value at 10% per year for the last 20 years and that his furniture could be worth $10,000 now.

Is my expression 10,000(1+.1)^x?

If so, I have to find what it costed 20 years ago. Would I just raise the expression to the power of 20, or -20?

- Algebra I -
**Reiny**, Monday, March 9, 2009 at 8:34pmno

let the amount that it "costed" 20 years ago be x

then x(1.1)^20 = 10000

x = 10000/(1.1^20)

I get 1486.44

you might have seen the formula

Present Value = amount (1+i)^-n

then Present value = 10000(1.1)^-20

= 1486.44

If you know about negative exponents you will realize that the two equations are the same.

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