jmc

Question

Mike paid 1.25$ for a stamp three years ago. He was just offered double that amount for the stamp. Assuming the stamp's offer price doubles every three years, how many dollars will he be offered in 12 more years?

Accepted Answer

The stamp is currently worth 2.50. 12 years is four more doubling periods, so at the end the stamp will be worth 2^4=16 times what it is now, or 16(2.50)=$40