Question

When Bruce got his first job, he put $6,225 of his earnings into an investment account to save for retirement. The value of the account is predicted to double each decade.

If Bruce makes no other deposits or withdrawals, what can he predict the value of his investment account to be after 3 decades?

Answer 1

Answer: Bruce can predict the value of his investment account to be $49,800 after 3 decades

Explanation:

If the value of the investment account doubles every decade, then after one decade (10 years), it will be worth $6,225 x 2 = $12,450.

After two decades (20 years) it will be worth $12,450 x 2 = $24,900.

Finally, after three decades (30 years), it will be worth $24,900 x 2 = $49,800.

Therefore, Bruce can predict the value of his investment account to be $49,800 after 3 decades if he makes no other deposits or withdrawals.