The investment growth is an illustration of an exponential function.
It will take 78.3 years for the investment to reach £29437.2
The given parameters are:
- Initial worth: 645.3
- Rate: 0.05
An exponential function is represented as:
Where:
- a represents the initial value
- r represents the rate.
So, we have:
When the investment becomes 29437.2, the equation becomes
Divide both sides by 645.3
Take the logarithm of both sides
This gives
Make t the subject
Hence, it will take 78.3 years for the investment to reach £29437.2
Read more about exponential functions at: