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Investments increase exponentially by
about 26% every 3 years. If you made a
$2,000 investment, how much money
would you have after 45 years?
Future Amount = $[?]
Hint: Future Amount = [(1 + r)t
-pt
↑
initial
amount
growth
rate
←time
periods
Round to the nearest dollar.

Sagot :

JAYMuturiidn

Answer:

9060$ is the final amount because 7060 is the interest

The amount of money after 45 years will be $64,060.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

We know that the compound interest is given as

A = P(1 + r)ⁿ

Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.

Investments increase exponentially by about 26% every 3 years.

If you made a $2,000 investment.

Then the equation will be

[tex]\rm A = 2000 \times \left (1.26 \right )^{\frac{t}{3}}[/tex]

Where t is the number of years.

Then the amount of money after 45 years will be

[tex]\rm A = 2000 \times \left (1.26 \right )^{\frac{45}{3}}[/tex]

Simplify the equation, then we have

A = 2000 × (1.26)¹⁵

A = 2000 × 32.03

A = $64,060

More about the compound interest link is given below.

https://brainly.com/question/25857212

#SPJ1

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