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 + )^

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 + )^

Answer

Explanation:

Step1: Identify the initial amount

The initial investment is $2500, so the first - blank value is 2500.

Step2: Identify the growth rate

The growth rate is 60% or 0.6, so the value in the second - blank is 0.6.

Step3: Determine the number of 6 - year periods

The time period is 18 years. Since the growth occurs every 6 years, the number of 6 - year periods $n=\frac{18}{6}=3$. So the value in the third - blank is 3.

Step4: Calculate the future amount

We use the compound - growth formula $A = P(1 + r)^n$, where $P = 2500$, $r=0.6$, and $n = 3$. $A=2500\times(1 + 0.6)^3=2500\times1.6^3=2500\times4.096 = 10240$.

Answer:

The future amount is $10240$, and the blanks should be filled as follows: 2500, 0.6, 3.