no
let the amount that it "costed" 20 years ago be x
then x(1.1)^20 = 10000
x = 10000/(1.1^20)
I get 1486.44
you might have seen the formula
Present Value = amount (1+i)^-n
then Present value = 10000(1.1)^-20
= 1486.44
If you know about negative exponents you will realize that the two equations are the same.
...excess information....
The historical society tells him that furniture similar to his has been appreciating in value at 10% per year for the last 20 years and that his furniture could be worth $10,000 now.
Is my expression 10,000(1+.1)^x?
If so, I have to find what it costed 20 years ago. Would I just raise the expression to the power of 20, or -20?
2 answers
A new machine was purchased at the beginning of one year for $200. Each year the machine loses value. It is worth 90% as much as the previous year. What is the value of the machine at the end of the 4th year.
1 answer