Question

A diamond is purchased for $3500 It's value increases %5 each year. Find the value of the diamond after 6 years.

Answer 1

\[3500(1.05)^6\] and a calculator

Answer 2

to increase a number by 5% multiply it by \(1.05\)
to do that six times, multiply by \((1.05)^6\)

Answer 3

The value of diamond is $3500. so,

5% of $3500=5/100*3500=$175

now it increases $175 each year. so, after 6 years it will be

(6*175)+3500=?