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