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22 April, 09:40

Mark has invested $300 at age 16 into a money market account earning 6%. How many times will Mark's investment double before age 52? What will his investment be worth? What would Mark's investment be if he had invested at age 28?

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  1. 22 April, 12:39
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    A. 3times

    B.$1214.68

    Step-by-step Explanation

    A

    Using compound interest formula

    A=P (1+I) ^n

    A is the amount

    P is the principal=$300

    I is the interest=0.06

    n is the time (between 52 and 16years) = 36years

    A=300 (1+0.06) ^36

    A=$2444.175

    Which means 300 would have become

    $2444.175 which is 8 folds.

    That means it would have doubled 3times (2*2*2) at age of 52.

    B. The time would change to (52-28) = 24

    Using compound interest formula

    A=300 (1+0.06) ^24

    A=$1214.68

    Therefore his investment would have been $1214.68.
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