Question

Investments increase exponentially by
about 60% every 6 years. If you start
with a $2,500 investment, how much
money would you have after 18 years?
Future Amount = $[? ]
←time
Hint: Future Amount = 1(1+r) periods
initial growth
amount rate
Round to the nearest dollar.
Enter

Answer 1

Using an exponential function, it is found that you would have $10,240 after 18 years.

What is an exponential function?

An increasing exponential function is modeled by:

$A(t) = A(0)(1 + r)^t$

In which:

• A(0) is the initial value.

• r is the growth rate, as a decimal.

Considering the initial value of $2,500, and the growth rate of 60% every 6 years, the equation is given by:

$A(t) = 2500(1.6)^\frac{t}{6}$

Hence, after 18 years, the amount is given by:

$A(18) = 2500(1.6)^\frac{18}{6} = 10240$

More can be learned about exponential functions at https://brainly.com/question/25537936

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