Respuesta :
An exponential function is [tex]F = P (1+i)^{t}[/tex]. $4975 is the value of the investment after 20 years, if Vanessa invested $2500 that will increase in value by 3.5% each year.
Step-by-step explanation:
The given is,
Vanessa invested $2,500
Increase in value by 3.5% each year
Step:1
Formula to calculate the future value is,
[tex]F = P (1+i)^{t}[/tex].............................(1)
Where, F - Future worth of the investment
P - Initial investment
i - Rate of increase
t - Time taken
From given values,
P = $2500
i = 3.5%
t = 20 years
Equation (1) becomes,
[tex]F = 2500 (1+0.035)^{20}[/tex] ( [tex]i=\frac{3.5}{100} = 0.035[/tex] )
[tex]= 2500 (1.035)^{20}[/tex]
= (2500 × 1.989788)
= 4974.4721
≅ $4975
F = $4975
Result:
An exponential function is [tex]F = P (1+i)^{t}[/tex]. $4975 is the value of the investment after 20 years, if Vanessa invested $2500 that will increase in value by 3.5% each year.
