Simon is a keen art collector.
He bought a painting at an auction in January 2020.
In January 2022 Simon sold the painting for £17,640.00.
Assume the value of the painting increased by 5% each year.
Calculate Simons profit.
Answer:
If we let p equal the value of the painting then…
p x 1.052 = £17640
Now we can rearrange to find the value for p.
p = 17640/1.052 = £16000
£17640 – £16000 = £1640
Therefore, Simon makes £1640 profit.