For this case we have an equation of the form: y = A * (b) ^ t Where, A: initial amount b: growth rate t: time Substituting values we have: y = 75000 * (1.125) ^ t For 30 years we have: y = 75000 * (1,125) ^ 30 y = 2568247.871 Rounding: y = 2568248 Answer: the value of the investment after 30 years is: A. $ 2,568,248
Given that a<span>n investment of 75,000 increases at a rate 12.5% per year. Find the value of the investment after 30 years. Solution The value after 30 years will be given by A=P(1+r/100)^n where: P=principple r=rate n=time from the information: P=75000, r=12.5%, n=time thus plugging the values we obtain: A=75000(1+12.5/100)^30 A=75000(1.125)^30 A=2,568,247.871
