investments increase exponentially by about 60% every 6 years. if you start with a $2500 investment, how…

investments increase exponentially by about 60% every 6 years. if you start with a $2500 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 $2500 investment, how much money would you have after 18 years? future amount = ?(1 + )^ future amount = i(1 + r)^t

Answer

Explanation:

Step1: Identify the initial investment

$I = 2500$

Step2: Identify the growth rate

The investment increases by 60% or $r=0.6$ every 6 - year period.

Step3: Determine the number of 6 - year periods in 18 years

$t=\frac{18}{6}=3$

Step4: Calculate the future amount

$Future\ Amount=I(1 + r)^{t}=2500(1 + 0.6)^{3}$ $=2500\times1.6^{3}=2500\times4.096 = 10240$

Answer:

$10240$