Help me jeebus (1 Viewer)

[ScottyG]

A painting appreciates by 16% p.a. It is currently worth $20000.

(a) How much will it be worth in 11 years?

(b) How long will it take for it to be worth $50000.

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Text book and I can't agree on answers. I have;

a = 20000
r = 1.16

Using Tn = ar^n-1 for both part a and part b to work it out, seems I'm wrong both times. Just can't figure out why is all.

 

[pLuvia]

A=P(1+r/100)ⁿ

a)
A=20000(1+0.16)¹¹
= $102345.29

b)
When A=50000
50000=20000(1.16)ⁿ
5/2=(1.16)ⁿ
log(5/2)=n log(1.16)
n=6.17 years

 

[ScottyG]

I want your babies.

 

[Rax]

I want your babies.

Who doesn't?

Pluvia and Riviet are so the best........
Competing with these people is kind of disturbing

GG