question 1 out of 2\nelena purchased a stamp collection for $5,000 thirty years ago. if it appreciated 8%…

question 1 out of 2\nelena purchased a stamp collection for $5,000 thirty years ago. if it appreciated 8% annually, what is it worth today?\n$36,400\n$50,313\n$17,000\n$123,023\nsubmit\n0 / 2 questions correct\nstart over

question 1 out of 2\nelena purchased a stamp collection for $5,000 thirty years ago. if it appreciated 8% annually, what is it worth today?\n$36,400\n$50,313\n$17,000\n$123,023\nsubmit\n0 / 2 questions correct\nstart over

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula for appreciation is $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the annual interest rate as a decimal, and $n$ is the number of years.

Step2: Convert values

Given $P=$5000$, $r = 0.08$ (since $8%=0.08$), and $n = 30$.

Step3: Substitute values into formula

$A=5000\times(1 + 0.08)^{30}$. First, calculate $(1 + 0.08)^{30}$. Using a calculator, $(1.08)^{30}\approx10.06265689$. Then, $A = 5000\times10.06265689=$50313.28445\approx$50313$.

Answer:

$50,313$