An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?

A. The investment will continue to grow at a rate of 7% per year compounded quarterly.

B. The investment will increase by $1050 per year.

C. The investment will more than double within 12 years.

D. The investment will triple within 15 years

Question

Mathematics

Rory Russo

11 June, 03:36

An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?

A. The investment will continue to grow at a rate of 7% per year compounded quarterly.

B. The investment will increase by $1050 per year.

C. The investment will more than double within 12 years.

D. The investment will triple within 15 years

+5

Answers (1)

Know the Answer?

Cohen Watkins · Answer 1

The option c is the answer because

2p=p (1.07) ^x

2=1.07^x

Solve for x

X=log (2) : log (1.07)

x=10 years the amount will be doubled after 10 years

But your option says the investment will (more) than double with (12) years

So it's correct