an investor purchases cryptocurrency for $1,000/unit. the cryptocurrency appreciates 200% in the first year…

an investor purchases cryptocurrency for $1,000/unit. the cryptocurrency appreciates 200% in the first year and 150% in the next. what is the value of the cryptocurrency after two years?\n$6,000/unit\n$6,500/unit\n$7,000/unit\n$7,500/unit\n$8,000/unit

an investor purchases cryptocurrency for $1,000/unit. the cryptocurrency appreciates 200% in the first year and 150% in the next. what is the value of the cryptocurrency after two years?\n$6,000/unit\n$6,500/unit\n$7,000/unit\n$7,500/unit\n$8,000/unit

Answer

Explanation:

Step1: Calculate value after first - year

The initial value is $1000$ per unit. A $200%$ appreciation means the value becomes $1000\times(1 + 2)=1000\times3 = 3000$ dollars per unit.

Step2: Calculate value after second - year

The value after the first year is $3000$ per unit. A $150%$ appreciation in the second year means the value becomes $3000\times(1 + 1.5)=3000\times2.5=7500$ dollars per unit.

Answer:

D. $7,500/unit$