Question

Investments increase exponentially by about 26% every 3 years. If you made a $2,000 investment, how much money would you have after 45 years?

Answer 1

Investments increase exponentially by about 26% every 3 years. If you made a $2,000 investment, how much money would you have after 45 years?

Mariah I'm afraid you made a little mistake lol....

Future Amount=2,000(1+0.26)^15

But yes the answer is:

64,060

Explanation:

Answer 2

In order to complete the equation we need to use this method :

Future Amount = I(1+r)^t

I=Initial Amount

R=Growth rate

T=Time periods

Now that we know that....

Time for some fun :)

You started with $2,000 so

Future Amount = 2,000(1+r)^t

The growth rate is 26% so we have to convert to decimal so

Future Amount=2,000(1+.26)^t

Time period is 26% every 3 years and you want to see how much money would you have after 45 years so you do 45/3=15

Future Amount=55(1+.73)^15

The answer is 64060.1826 BUT rounded to the nearest dollar... It is now: $64,060

Hope this helps!!!!!!!

Explanation: