Exponential Growth Math Problem

Question

Michael Jackson's original white glove is discovered and listed on eBay for auction. The initial bid is $1200 and the bids increase by 16% each hour. What is the bidding price of the glove after 24 hours? Approximately when will the bidding exceed $100,000?

Answer 1

f(x) = ab^t, where a = starting amount, b = rate, t = time.

 

f(24) = 1200(1.16)²⁴

f(24) ≈ 1200(35.236)

f(24) ≈ 42283.70

 

The bid reaches $42,283.70 after 24 hours.