Posted by **Kate** on Sunday, February 28, 2010 at 6:45pm.

Suppose an investment of $500 doubles in value every 15 years. How much is the investment worth after 30 years? After 45 years?

please help!!! i don't even understand how to approach this problem! =(

- Math--Exponential Functions -
**MathMate**, Sunday, February 28, 2010 at 7:30pm
Initial investment = $500

Investment value after 15 years

= $500*2

= $1000 (doubles)

15 more years later (30), value of investment

= $1000 * 2

= $2000 (doubles from 15 years ago)

I will leave it to you to calculate the value of investment at 45 years from the initial investment.

Mathematically, let P = initial principal,

2P = PR^15 (R=interest rate)

R=e^(ln(2)/15)=1.047294123

Value of investment after N years,

V(N)=$500*R^N

for N=15,

V(15)=$500*1.047294123^15

=$1000.00

V(30)=$500*1.047294123^30

=$2000.00

and so on.

- Math--Exponential Functions -
**professor**, Tuesday, March 23, 2010 at 10:36pm
after 30 yrs the investment is worth $2,000

after 45 yrs the investment is worth $4,000

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