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3 years ago

An investment of 100,000 AED increases at a rate of 16% per year. What is

Mathematics

1 answer:

stepan [7]3 years ago

7 0

Answer:

1,946,075.95 AED

Step-by-step explanation:

Firstly, we write the general formula for an exponential increase as follows;

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

where V(t) is the value after some number of years t

A is the investment amount which is 100,000 AED

r is the rate of increase which is 16% = 16/100 = 0.16

t is the number of years which is 20

substituting these values;

V(20) = 100,000( 1 + 0.16)^20

V(20) = 100,000(1.16)^20

V(20) = 1,946,075.95 AED

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