Question

Suppose an investment of $1,700 doubles in value every 10 years. How much is the investment worth after 20 years?

$34,000
$6,800
$4,100
$68,000

Answer 1

After every ten years you have $3400, after 20 years is $6800

Answer 2

Answer: $6,800

Explanation:

Given: The investment of $1,700 doubles in value every 10 years.

Here initial value A= 1700,

Multiplicative rate of change b=2

The exponential function for the given problem will be :-

`y=Ab^x`

`\\\Rightarrow y=1700(2)^t`, where t is the time period of ever 10 years.

After 20 years (t=2) the amount will be =
`=1700(2)^2=\$\ 6,800`