investments increase exponentially by about 60% every 6 years. if you start with a $250 investment, how much…

investments increase exponentially by about 60% every 6 years. if you start with a $250 investment, how much money would you have after 18 years? future amount =?(1 + ) future amount = i(1 + r)^t

investments increase exponentially by about 60% every 6 years. if you start with a $250 investment, how much money would you have after 18 years? future amount =?(1 + ) future amount = i(1 + r)^t

Answer

Explanation:

Step1: Identify the values of I, r and t

I = 2500 (initial investment), r=0.6 (60% growth rate per 6 - year period), t = 18/6 = 3 (number of 6 - year periods in 18 years)

Step2: Use the compound - growth formula

Future Amount = I(1 + r)^t. Substitute I = 2500, r = 0.6 and t = 3 into the formula. Future Amount=2500×(1 + 0.6)^3

Step3: Calculate (1 + 0.6)^3

(1 + 0.6)^3=1.6^3=1.6×1.6×1.6 = 4.096

Step4: Calculate the future amount

Future Amount = 2500×4.096 = 10240

Answer:

10240