Question

An initial investment of $60.00 increases in value by 15% each year. Which of the following statements are true? Select all that apply. Round your answers to the nearest dollar.

Answer 1

Given:initial investment = $60.increase in value by 15% each year
The function that best represents the above problem is: f(x) = 60 * (1.15)^x
f(4) = 60 * (1.15)⁴ = 60 * 1.75 = 105.00f(6) = 60 * (1.15)⁶ = 60 * 2.31 = 138.60f(7.86) = 60 * (1.15)⁷.⁸⁶ = 60 * 3 = 180After 7.86 years the value of the investment will be 3 times the initial valuef(8) = 60 * (1.15)⁸ = 60 * 3.06 = 183.60 After 8 years the value of the investment will be $184.00