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The value of a jewel in 2015 was $17500. The jewel was purchased in 2008, and its value appreciated 2.5%
each year. What was the initial value of the jewel when it was first bought? Round to two decimal places

Respuesta :

lublana

Answer:

$14722.14

Step-by-step explanation:

We are given that

In 2015

The value of jewel=$17500

Rate of appreciation, r=2.5%

We have to find the initial value of the jewel when it was first bought.

Time, n=7 years

Final value=[tex]Initial\;value (r/100+1)^n[/tex]

Using the formula

[tex]17500=Initial\;value(2.5/100+1)^7[/tex]

[tex]17500=Initial\;value(1.025)^7[/tex]

[tex]Initial\;value=\frac{17500}{(1.025)^7}[/tex]

Initial value=$14722.14

Hence, the the initial value of the jewel when it was first bought=$14722.14

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