Tuesday

October 21, 2014

October 21, 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.

**Answer this Question**

**Related Questions**

Math - Real Estate an office building purchased for $1, 200,000 is appreciating ...

math - Real Estate an office building purchased for $1, 200,000 is appreciating ...

MATH - The value V of a machine t years after it is purchased is inversely ...

Finance - Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,...

Calculus - I am confused on how to solve this problem : $5000 is invested for 4 ...

Finance - Mary and Joe would like to save up $10,000 by the end of three years ...

Fin- Management - David purchased a $100,000 participating whole life policy. ...

Statistics - The head librarian claims that books have been checked out an ...

Personal Finance - Mary and Joe would like to save up $10,000 by the end of ...

Managerial Economics - You are considering setting up a software development ...