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You invested $10,000 in 2020. It increases 5% for 5 years. Over the next 5 years it decreases in value by 5% each year. How much will you have in 2030?

User Mehr
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1 Answer

9 votes

Answer:

In 2030 I will have $ 9,875.32 in my account.

Step-by-step explanation:

Given that I invested $ 10,000 in 2020, and it increases 5% for 5 years, but over the next 5 years it decreases in value by 5% each year, to determine how much I will have in 2030 the following calculation must be performed:

10,000 x 1.05 x 1.05 x 1.05 x 1.05 x 1.05 = X

10,500 x 1.05 x 1.05 x 1.05 x 1.05 = X

11.025 x 1.05 x 1.05 x 1.05 = X

11,576.25 x 1.05 x 1.05 = X

12,155.06 x 1.05 = X

12,762.81 = X (2025)

12,762.81 x 0.95 x 0.95 x 0.95 x 0.95 x 0.95 = X

12,124.67 x 0.95 x 0.95 x 0.95 x 0.95 = X

11,518.44 x 0.95 x 0.95 x 0.95 = X

10,942.51 x 0.95 x 0.95 = X

10,395.39 x 0.95 = X

9,875.32 = X (2030)

Thus, in 2030 I will have $ 9,875.32 in my account.

User Rajachan
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