You invest $400 when you turn 18 years old. If left untouched, you are told to expect the money to double every year. How much money will you have in 10 years?
what is a and b and how much money will you have in 10 years
In this scenario,
a = initial investment = $400
b = doubling factor = 2
To calculate how much money you will have in 10 years, you can use the formula for compound interest:
A = P * (1 + r)^t
Where:
A = final amount
P = principal amount (initial investment)
r = interest rate in decimal form
t = number of years
Since you are told the money doubles every year, the interest rate (r) is 100% (1) per year. Therefore, substituting the given values into the formula:
A = 400 * (1 + 1)^10
= 400 * 2^10
= 400 * 1024
= $409,600
So, after 10 years, you will have $409,600.