Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Sure! Let's solve this problem step-by-step.
### Step 1: Understanding the Parameters
- Initial Investment (I): [tex]$2500 - Rate of Increase (r): 60% or 0.60 - Total Time (t_years): 18 years - Period (t_period): 6 years ### Step 2: Number of Periods First, we need to determine how many 6-year periods fit into 18 years. \[ \text{Number of periods} = \frac{\text{Total Time (t_years)}}{\text{Period (t_period)}} \] Plugging in the values: \[ \text{Number of periods} = \frac{18 \ \text{years}}{6 \ \text{years/period}} = 3 \] ### Step 3: Future Amount Calculation Next, we will use the formula for exponential increase: \[ \text{Future Amount} = \text{Initial Investment} \times (1 + \text{Rate of Increase})^{\text{Number of Periods}} \] Substitute the given values: \[ \text{Future Amount} = 2500 \times (1 + 0.60)^3 \] ### Step 4: Solving the Equation Now, calculate the factor of the exponential increase: \[ \text{Future Amount} = 2500 \times (1.60)^3 \] ### Step 5: Final Calculation Performing the multiplication: \[ \text{Future Amount} = 2500 \times 4.096 = 10240 \] Therefore, after 18 years, your investment would grow to approximately $[/tex]10,240.00.
### Step 1: Understanding the Parameters
- Initial Investment (I): [tex]$2500 - Rate of Increase (r): 60% or 0.60 - Total Time (t_years): 18 years - Period (t_period): 6 years ### Step 2: Number of Periods First, we need to determine how many 6-year periods fit into 18 years. \[ \text{Number of periods} = \frac{\text{Total Time (t_years)}}{\text{Period (t_period)}} \] Plugging in the values: \[ \text{Number of periods} = \frac{18 \ \text{years}}{6 \ \text{years/period}} = 3 \] ### Step 3: Future Amount Calculation Next, we will use the formula for exponential increase: \[ \text{Future Amount} = \text{Initial Investment} \times (1 + \text{Rate of Increase})^{\text{Number of Periods}} \] Substitute the given values: \[ \text{Future Amount} = 2500 \times (1 + 0.60)^3 \] ### Step 4: Solving the Equation Now, calculate the factor of the exponential increase: \[ \text{Future Amount} = 2500 \times (1.60)^3 \] ### Step 5: Final Calculation Performing the multiplication: \[ \text{Future Amount} = 2500 \times 4.096 = 10240 \] Therefore, after 18 years, your investment would grow to approximately $[/tex]10,240.00.
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.