We have a bond that doubles it value every decade.
Initially, at decade=0, its value is 250.
Then, if it doubles, we will have:
We can generalize this formula as:
We can find the amount of decades that it takes for the bond to reach a value of $10,000 using the equation for V(d):
It will take 6 decades for the bond to have a value that is more than $10,000.
Answer:
1)
Decades since bond is bought | Dollar value of bond
0 | 250
1 | 500
2 | 1000
3 | 2000
d | 250*2^d
2) It will take 6 decades for the bond to have a value that is more than $10,000.
3) V(d)=250*2^d