Javier bought a painting for $150. Each year, the painting's value increases by a factor of 1.15.
Which expression gives the painting's value after 7 years?
Each year the painting's value increases by a factor of 1.15. This is an exponential growth. We would apply the formula for exponential growth which is expressed as
A = P(r)^t
A represents the value of the painting after t years.
t represents the number of years.
P represents the initial value of the painting.
r represents rate of increase.
From the information given,
P = $150
t = 7 years
r = 1.15
Therefore, the expression that gives the painting value after 7 years is
A = 150(1.15)^7