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Home > CALC > Chapter 6 > Lesson 6.4.2 > Problem 6-140

6-140.
  1. WHAT A CARD!

  2. The value, V, of a Honus Wagner baseball card in mint condition appreciates at 12% per year. It was sold at auction in 1991 for $461,000. If t = time in years since 1991, then V = 461000(1.12)t . Homework Help ✎

    1. What was its value in 2000?

    2. Find the average value of the card over the period 1991 - 2000.

    3. When was the card worth the value you found in part (b)?

We are given a value function, V(t). Notice that t = years since 1991. Evaluate for the year 2000.

Value = V(t) = 461,100(1.12)t

Examine the equation above:

What is the annual interest rate?

What is the initial value of the card?

Unlike average value (AROC), actual value (IROC) must be found with a derivative.

Let V '(t) = your answer in part (b).

The card was worth its average value in 1995 or 1996.