An investment of 75,000 increases at a rate 12.5% per year. Find the value of the investment after 30 years. A. $2,568,248B. $1,438,883C. $256,825D. $243,549
Accepted Solution
A:
For this case we have an equation of the form: y = A * (b) ^ t Where, A: initial amount b: growth rate t: time Substituting values we have: y = 75000 * (1.125) ^ t For 30 years we have: y = 75000 * (1,125) ^ 30 y = 2568247.871 Rounding: y = 2568248 Answer: the value of the investment after 30 years is: A. $ 2,568,248