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21 May, 16:19

An initial investment of $10,000 grows at 11% per year.

8. Write an exponential function for the value, y, after x years.

9. When will the investment be more than $150000?

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Answers (1)
  1. 21 May, 17:16
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    Hi,

    with compound interest:

    1) y = 10 000 * 1.11^x

    2) 10 000 * 1.11^x = 150 000

    1.11^x = 150 000 / 10 000

    1.11^x = 15

    x = ln (15) / ln (1.11)

    x ≈ 26 years
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