investments increase exponentially by about 15% every 2 years. if you start with a $500 investment, how much…

investments increase exponentially by about 15% every 2 years. if you start with a $500 investment, how much money would you have after 40 years? future amount = ?(1 + )^ future amount = i(1 + r)^t enter the number that belongs in the green box.

investments increase exponentially by about 15% every 2 years. if you start with a $500 investment, how much money would you have after 40 years? future amount = ?(1 + )^ future amount = i(1 + r)^t enter the number that belongs in the green box.

Answer

Explanation:

Step1: Identify the initial - investment value

The initial investment $I$ is the starting amount of money. Here, the starting investment is $500$. In the compound - growth formula $Future\ Amount = I(1 + r)^t$, the value that goes in the place of the green box (representing the initial investment) is the starting investment amount.

Step2: Recall the formula components

The formula $Future\ Amount = I(1 + r)^t$ has $I$ as the initial investment, $r$ as the growth rate per period, and $t$ as the number of periods. We are looking for the value of $I$.

Answer:

500