I need help with these 2 questions, please also try to explain how to get it.
1 answer:
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<u>Answer-</u>
<em>The total amount you would have earned over the first 16 years is </em><em>$90047.20</em>
<u>Solution-</u>
The exponential function that would given the growth is,
Where,
P' = Future value,
P = Current value = $50000
r = rate of change = 4% = 0.04
t = time = 15 year (not 16 because the the increment occurs at year end and we want to get the value at the beginning of 16th year)
Putting the values,
Therefore, the total amount you would have earned over the first 16 years is $90047.20