Question

Berto invested in a precious mineral. The value of the mineral tends to increase by about 11% per year. He invests $40,000 in 2015.

How much more will his investment be worth in 2020?

Answer 1

11% per year = 0.11 / year
Present value (2015) = $40,000
Future value (2020) = $40,000*(1+0.11)^(2020-2015)
=40000*1.11^5
=$67,402.33