Question

A person invested $7,300 in an account growing at a rate allowing the money todouble every 14 years. How much money would be in the account after 15 years, tothe nearest dollar?

Answer 1

The formula for the compound interest is,

`A=P(1+(r)/(100))^t`

Determine the value for A = 14600, P = 7300 and t = 14 years.

`\begin{gathered} 14600=7300(1+(r)/(100))^(14) \\ 1+(r)/(100)=2^{(1)/(14)} \end{gathered}`

Determine the amount after 15 years.

`\begin{gathered} A=7300(1+(r)/(100))^(15) \\ =7300\cdot(2^{(1)/(14)})^(15) \\ =7300\cdot2.10151 \\ \approx15341 \end{gathered}`

So amount of money after 15 years is 15341.