Lily purchases a ring for $990 that appreciates at a rate of 7% per year. What will the value of the ring be in 10 years?

Question

tkhunny · Answer

This is a single payment annual accumulation.  You need to get VERY GOOD at these.  Everything else is harder!

$990(1.07)^{10}$

anonymous · Answer

Alright, thank you. I tend to struggle with turning the percents into multiplied decimals. How does appreciating at 7% mean multiply by 1.07? (I understand the exponent part)

tkhunny · Answer

7% = 0.07 = 7/100

1 + 7% = 1.07 = 107/100