You collect model airplanes. One particular model is currently valued at $275. If this model increases in value by 5% annually, it will be worth ____ six years from now and _____ twelve years from now.
A) $368.01; $442.89
B) $368.01; $461.34
C) $368.53; $442.89
D) $368.53; $467.08
E) $368.53; $493.86

Question

Quizplus · Accepted Answer

To find the future value of the model airplane, use the formula for compound interest: Future Value = Present Value * (1 + rate)^time. For six years: $275 * (1 + 0.05)^6 = $368.53. For twelve years: $275 * (1 + 0.05)^12 = $493.86.

You Collect Model Airplanes