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leva [86]
1 year ago
10

Investments increase exponentially by

Mathematics
1 answer:
Blizzard [7]1 year ago
5 0

Using an exponential function, it is found that you would have $10,240 after 18 years.

<h3>What is an exponential function?</h3>

An increasing exponential function is modeled by:

A(t) = A(0)(1 + r)^t

In which:

  • A(0) is the initial value.
  • r is the growth rate, as a decimal.

Considering the initial value of $2,500, and the growth rate of 60% every 6 years, the equation is given by:

A(t) = 2500(1.6)^\frac{t}{6}

Hence, after 18 years, the amount is given by:

A(18) = 2500(1.6)^\frac{18}{6} = 10240

More can be learned about exponential functions at brainly.com/question/25537936

#SPJ1

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