you invest 1000$ at an annual growth intrest rate of 5%.how much money will your investment be worth in 20years?
Exponential growth
a = initial amount before measuring growth/decay ($1000)
r = growth/decay rate (often a percent)(5% or .05)
x = number of time intervals that have passed (20 years)
y=a(1+r)^20
sorry...the formula should read
y=a(1+r)^x
To calculate the future value of an investment, you can use the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^(Number of Years)
In this case, the Present Value (P) is $1000, the Interest Rate (r) is 5% (or 0.05), and the Number of Years (n) is 20. Let's substitute those values into the formula and calculate the Future Value:
Future Value = $1000 * (1 + 0.05)^20
To simplify the calculation, let's break it down step by step:
Step 1: Calculate (1 + 0.05) = 1.05
Step 2: Raise 1.05 to the power of 20 = 1.05^20 = 2.653297705
Now, we can calculate the Future Value:
Future Value = $1000 * 2.653297705 ≈ $2,653.30
Therefore, your investment will be worth approximately $2,653.30 in 20 years.