12. mrs morey bought a classic barbie collection that has become super popular! she paid $100 and every year…

12. mrs morey bought a classic barbie collection that has become super popular! she paid $100 and every year the value goes up 25%. what is the value of her baribies after 12 years?

12. mrs morey bought a classic barbie collection that has become super popular! she paid $100 and every year the value goes up 25%. what is the value of her baribies after 12 years?

Answer

Explanation:

Step1: Identify the formula

The formula for compound - growth is $A = P(1 + r)^t$, where $P$ is the initial amount, $r$ is the growth rate as a decimal, and $t$ is the number of time periods.

Step2: Convert the percentage to a decimal

The growth rate $r = 25%=0.25$, the initial amount $P = 100$, and the number of years $t = 12$.

Step3: Substitute the values into the formula

$A=100\times(1 + 0.25)^{12}$.

Step4: Calculate $(1 + 0.25)^{12}$

$(1.25)^{12}\approx15.258789$.

Step5: Calculate the final amount

$A = 100\times15.258789 = 1525.8789\approx1525.88$.

Answer:

$1525.88$