Question

(b) An Investment is estimated to grow at the rate al 15% per annum. If the worth of the Investment now is ¢850,000 i. What will its worth be in the 6th year? What is the percentage increase in its worth after 6th year? In what year will the investment worth ¢3.23million ?​

Answer 1

Answer:

~9.6 years it will be worth 3.23 mil.    

Step-by-step explanation:

This problem requires use of the growth formula.

PART 1:

Equation:

$3,230,000 = 850,000 * (1.15)^6$

By solving this you get:

A valuation of $1,966,101.65078125 after 6 years

PART 2:

Equation:

$3,230,000 = 850,000*(1+.15)^x$

By solving this (which im too lazy to show the steps for) you get:

x = years

x = ~9.6 years / 9.55196417 years