Week 322 (10th November 2023)

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.