Answer:
[tex]\$6,326.60[/tex]
Step-by-step explanation:
we know that
The equation of a exponential growth function is given by
[tex]y=a(1+r)^x[/tex]
where
y is the value of the painting
x is the number of years
a is the initial value
r is the rate of change
we have
[tex]a=\$5,000\\r=4\%=4/100=0.04[/tex]
substitute
[tex]y=5,000(1+0.04)^x[/tex]
[tex]y=5,000(1.04)^x[/tex]
How much will the painting be worth in 6 years?
For x=6 years
substitute the value of x in the equation
[tex]y=5,000(1.04)^6=\$6,326.60[/tex] ----> rounded to the nearest hundredth
