Math--Exponential Functions

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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 -

    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 -

    after 30 yrs the investment is worth $2,000

    after 45 yrs the investment is worth $4,000

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