The present value is $2000 and the account is at 5% simple interest. How long will it take to achieve a future value of $3000?Ye
1 answer:
You might be interested in
Answer: $ 125987.80
Step-by-step explanation:
Given: The value, V(t) of $393,000 worth of assets after t years, that depreciate at 15% per year, is given by the formula
, here
is the initial asset value and b is the multiplicative decay factor.
The exponential decay function is given by ;-
, where A is the initial value , x is the times period and b is the multiplicative decay factor.
where b = 1-r, r is the rate of decay.
Since r = 15%=0.15
Therefore, b = 1-0.15=0.85
Now ,for 7 years , the value of assets is given by :-
Hence, the assets valued at after 7 years = $ 125987.80