in 2022, malia purchased a rolex watch for $1,200. the watch appreciated in value with a rate of 8% each…

in 2022, malia purchased a rolex watch for $1,200. the watch appreciated in value with a rate of 8% each year. what will the value of the watch be worth in 2026? round to the nearest hundredths place (think dollars and cents --- example: $499.75). answer: (number)

in 2022, malia purchased a rolex watch for $1,200. the watch appreciated in value with a rate of 8% each year. what will the value of the watch be worth in 2026? round to the nearest hundredths place (think dollars and cents --- example: $499.75). answer: (number)

Answer

Explanation:

Step1: Calculate number of years

The time from 2022 to 2026 is $2026 - 2022=4$ years.

Step2: Use compound - growth formula

The compound - growth formula is $A = P(1 + r)^t$, where $P$ is the initial amount, $r$ is the annual growth rate as a decimal, and $t$ is the number of years. Here, $P=$1200$, $r = 0.08$, and $t = 4$. So, $A=1200\times(1 + 0.08)^4$. First, calculate $(1 + 0.08)^4=(1.08)^4=1.08\times1.08\times1.08\times1.08 = 1.36048896$. Then, $A = 1200\times1.36048896=1632.586752$.

Step3: Round the result

Rounding $1632.586752$ to the nearest hundredths place gives $1632.59$.

Answer:

$1632.59$