Question: Assume you are an antique furniture dealer located in Los Angeles area. Most of your clients are either Hollywood movie stars or very wealthy people living in expensive suburbs of Los Angles. Some movie producers or studios also rent antique furniture from you.

Antique furniture from Far East, especially from China, is in great demand and your clients are willing to pay a premium for a good piece of furniture. You travel around the world looking for furniture built before 1950. Obviously you add your travel expenses to the selling price of the furniture.

Yesterday, while you were busy taking an inventory, Harrison Ford the movie star and Steven Spielberg famous Director/Producer, stopped by your showroom on Rodeo drive. They are making a new sequel to Indiana Jones and this episode will involve oriental background. They were looking for antique oriental furniture built in late 1800s or early 1900s. They liked an oriental chair in your showroom, which was built in 1903. Steven has asked you for a price quote for the chair.

It is very difficult to price an antique piece of furniture. However, with years of experience and college education, you have devised a formula to calculate the value of antique items. The value (price) of this oriental chair (one piece only) can be approximated as:

V = 1.5(1.1)^t, where V is the value in dollars and t is the number of years chair was built

Find out the value of the chair in dollars and also evaluate the rate, in dollars per year, at which the price is increasing.