Question

A quantity with an initial value of 3400 grows exponentially at a rate of 1.5% every 3 minutes. What is the value of the quantity after 1.65 hours, to the nearest hundredth?

Answer 1

FV= 5,557.23

Explanation:

Giving the following information:

Present value= 3,400

Growth rate (g)= 1.5% every 3 minutes

Number of periods (n)= (1.65*60) / 3= 33

To calculate the future value, we need to use the following formula:

FV= PV*(1+g)^n

FV= 3,400*(1.015^33)

FV= 5,557.23