question 21\nkant miss company is promising its investors that it will double their money every three years…
question 21\nkant miss company is promising its investors that it will double their money every three years. if you invest $250 now and kant miss is able to deliver on its promise, how long will it take your investment to reach $32,000? round your answer to the nearest year. use the rule of 72.\n2 points\ninteger, decimal, or e notation allowed
Answer
Explanation:
Step1: Determine the number of doublings
We start with an investment of $250 and want to reach $32000. We find out how many times the money needs to double. Let $n$ be the number of doublings. We know that the amount $A$ after $n$ doublings of an initial amount $P$ is $A = P\times2^{n}$. So, $32000=250\times2^{n}$. Then, $\frac{32000}{250}=2^{n}$, and $128 = 2^{n}$. Since $2^{7}=128$, $n = 7$.
Step2: Calculate the time
The money doubles every 3 years. If the number of doublings is $n = 7$, then the time $t$ in years is $t=3\times n$. So, $t = 3\times7=21$ years.
Answer:
21