In this question, we're trying to find how much he paid in income taxes since 2010.
In this case, we would use the appreciation formula:
V = P(1 + r)^n
v = new value
p = principal
r = rate
n = number of years
Plug in your variables to the equation:
V = 7,004.18(1 + 0.015)^6
Solve:
V = 7,004.18(1 + 0.015)^6
V = 7,004.18(1.015)^6
V = 7,004.18(1.093443263942640625)
V = 7,658.673
V = 7,658.67
This means that he would've paid $7,658.67 in taxes since 2010
Answer:
$7,658.67
