Final answer:
To calculate the future value after a certain period of time with a given initial value and growth rate, we can use the formula: Future Value = Initial Value × (1 + Growth Rate)^Number of Periods. Plugging in the values and calculating, we can find the future value after 5 years.
Step-by-step explanation:
The question is about the initial value that is increasing at a rate of 17% per year. To calculate the future value after a certain period of time, we can use the formula:
Future Value = Initial Value × (1 + Growth Rate)^Number of Periods
Plugging in the values into the formula, we have:
Future Value = 5 × (1 + 0.17)^Number of Years
If you want to find the future value after 5 years, you can substitute Number of Years with 5:
Future Value = 5 × (1 + 0.17)^5 = 5 × (1.17)^5 = 5 × 1.969 = 9.847
So, after 5 years, the value would be approximately 9.847.