investments increase exponentially by about 1...
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 = 500(1 + ?) future amount = i(1 + r)^t enter the number that belongs in the green box.
Answer
# Explanation:
## Step1: Identify the growth - rate per period
The investment increases by 15% or 0.15 every 2 years. In the compound - growth formula $A = I(1 + r)^t$, $r$ is the growth rate per period. Here, the growth rate per 2 - year period is 0.15.
## Step2: Identify the number of periods
The time period is 40 years and the period length is 2 years. So the number of 2 - year periods $t=\frac{40}{2}=20$.
The formula for the future amount is $A = 500(1 + 0.15)^{20}$.
# Answer:
0.15