Question

Create an equation to model an investment of 5000 dollars which increases 15% each year. Set up an equation to solve for how long it would take for the investment to double. ( you do not need to solve this problem)

Answer 1

Initial amount = 5000
Interest rate = 1.15
The amount increases exponentially.
Then we get the following equation

`5000 * 1.15 {}^(t)`
In this formula t represents time.

The equation of doubling time

`5000 * 1.15 {}^(t) = 10000`

`1.15 {}^(t) = 2`