Answer:
FV= $3,672.07
Step-by-step explanation:
Giving the following information:
Present Value (PV)= $3,200
Number of periods (n)= 4 years
Appreciation rate= 3.5% = 0.035
To calculate the price of the ring in four years, we need to use the following formula:
FV= PV*(1 + i)^n
FV= 3,200*(1.035^4)
FV= $3,672.07
