Question

An investment of $500 increases at a rate of 12.5% per year. What is the value of the investment after 30 years? Round to the nearest dollar.​

Answer 1

Here's the equation:

0.125(500) + 500

But because it is 30 years:

30(0.125(500)) + 500

3.75(500) + 500

We can make it simpler:

4.75(500)

2375

You will have $2375

Explanation: