Question

An antique jar priced at 30,000 pesos Increases its value by 10% every Year, how Much will it cost after 5 years?

Answer 1

48315.3 pesos

Explanation:

Equation for compound interest

`A = P (1 + r/n)^(nt)`

where
A = Total amount (principal + interest)
P = Principal (start amount)
r = annual interest rate ( decimal i.e. 50% = 0.5)
n = number of times interest is compounded per year
t = number of years of compounded increase

In this case

`A = 30000*(1 + 0.1/1)^(5)`

`= 30000* (1.1)^5`

`= 30000 * 1.61051`

# = 48315.3

Answer 2

`color(blue)("Cost of antique jar after 5 years " = 48,315.30 " pesos"`

Explanation:

Cost of Antique jar `= P = 30, 000` pesos

Annual rate of increase #= R = 10%3, compound interest

No. of years `= N = 5`

Cost after 5 years `= A = P * (1 + (R/100))^N`

`A = 30,000 * (1 + (10/100))^5 = 48,315.30` pesos

Answer 3

`=43,923` pesos

Explanation:

An increase of `10%` can be shown as:

`100%+10% = 110% = 110/100 = 1.1`

This is therefore the common ratio. Each term is multiplied by `1.1`

The sequence starts as:

`30,000," "33,000," "36,300," "....`

`T_n = ar^(n-1)`

`T_5 = 30,000 xx 1.1^4`

`=43,923` pesos