vani has a collection of vintage action figures that is worth $140. if the collection appreciates at a rate…

vani has a collection of vintage action figures that is worth $140. if the collection appreciates at a rate of 15% per year, which equation represents the value of the collection after 2 years?\nanswer\n$v = 140(0.85)^2$\n$v = 140(0.15)^2$\n$v = 140(1 - 0.15)^2$\n$v = 140(1 + 0.15)^2$
Answer
Explanation:
Step1: Recall compound - growth formula
The formula for compound growth is $V = P(1 + r)^t$, where $P$ is the initial value, $r$ is the rate of growth as a decimal, and $t$ is the number of time - periods.
Step2: Identify the values given
Here, $P=$140$, $r = 0.15$ (since 15%=0.15), and $t = 2$ years.
Step3: Substitute values into formula
Substituting the values into the formula $V = P(1 + r)^t$, we get $V=140(1 + 0.15)^2$.
Answer:
$V = 140(1 + 0.15)^2$ (the last option)