A limited edition poster increases in value each year with an initial value of $18. After one year and an increase of 15% per year, the poster is worth $20.70. Which equation can be used to fund the value, y, after x years?

We have been given that a limited edition poster increases in value each year with an initial value of $18. After one year and an increase of 15% per year, the poster is worth $20.70.  

We will use exponential growth formula to find our required equation.

We know that an exponential function is in form , where

a = Initial value,

r = Growth rate in decimal form,    

x = Time.    

Let us convert 15% into percentage.

Initial value is 18.

Upon substituting these values in above formula, we will get:

Let us check our function by finding the value of poster after one year as:

Since the value of poster after 1 year matched with our findings, therefore, the equation can be used to fund the value, y, after x years.

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.