Question

An initial investment of $4 is worth $144 after 5 years. If the annual growth reflects a geometric

sequence, approximately how much will the investment be worth after 11 years?


354

31104

12698

319

Answer 1

The investment will be worth approximately $126.98 after 11 years.

Step-by-step explanation:

To find the value of the investment after 11 years, we need to determine the common ratio for the geometric sequence. We know that the initial investment of $4 is worth $144 after 5 years. Using the formula for compound interest, we can set up the equation:

$4
`(1 + r)^5` = $144

Solving for r, we get r ≈ 1.6494. Now we can use this common ratio to find the value after 11 years:

$4
`(1 + 1.6494)^(11)` ≈ $126.98

Therefore, the investment will be worth approximately $126.98 after 11 years.