An investment of 100,000 AED increases at a rate of 16% per year. What is the value of the investment after 20 years? Give your answe

Question

An investment of 100,000 AED increases at a rate of 16% per year. What is
the value of the investment after 20 years? Give your answer to 2 decimal
places

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Linh Đan 3 years 2021-08-30T19:35:32+00:00 1 Answers 4 views 0

Answers ( )

  1. Delwyn
    0
    2021-08-30T19:36:47+00:00
    Reply

    Answer:

    1,946,075.95 AED

    Step-by-step explanation:

    Firstly, we write the general formula for an exponential increase as follows;

    V(t) = A( 1 + r)^t

    where V(t) is the value after some number of years t

    A is the investment amount which is 100,000 AED

    r is the rate of increase which is 16% = 16/100 = 0.16

    t is the number of years which is 20

    substituting these values;

    V(20) = 100,000( 1 + 0.16)^20

    V(20) = 100,000(1.16)^20

    V(20) = 1,946,075.95 AED

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