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
