Problema Solution
Marcus wants to invest $2500 in a stock portfolio that triples every ten years.
A. Find the formula f(t) for this investment after t years.
B. How much money will Marcus have after twenty years?
C. How long will it take for Marcus to have $100,000?
Answer provided by our tutors
A.
f(t) = 2500(1 + 200/100)^(t/10)
f(t) = 2500*3^(t/10)
B. t = 20
f(20) = 2500*3^(20/10)
f(20) = 2500*9
f(20) = $22,500
C. f(t) = 100,000, we need to find t
2500*3^(t/10) = 100000
t = 33.58 years
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