Question

if the value of the item increases at a rate of 8% each year, what is the value after 1 year?
number of years, x | value of item, y
0 | $9,450
1 | ?
2 |

○ $11,022.48
○ $9,458
○ $9,442
○ $10,206

Explanation:

Step1: Identify initial value and rate

Initial value at year 0: $9,450; annual rate: 8% = 0.08

Step2: Calculate value after 1 year

Value = Initial value × (1 + rate) = $9450 × 1.08 = $10206

Answer:

D. $10,206