In order to retire on time, you need to begin investing money. Experts say that a good investment will double in value every seven years.
Which of the following would you use to calculate the value of your investment?
a) arthmetic sequence
b) conjecture
c) geometric sequence
d) inductive reasoning
2006-11-14 05:11:21 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
Investments with a doubling would be a geometric sequence. Terms depend on a *multiplication* of previous terms, so it is geometric.
c) geometric sequence.
2006-11-14 05:16:50 · answer #1 · answered by Puzzling 7 · 1⤊ 0⤋
e) expodential ....
A = P e^ (RT) ... a is amount saved w/ intrest, p is principle amount (starting amount), r is rate (.08, .06, ....) and t = time
use the rule of 72 to estimate your time of doubling
at 6%, 72 / 6 = 12 years....
( 2 = 1e^(.06t))
latural log (2) = .06t
ln(2) / .06 = t
11.5524 = t ( 12 is a good guess)
2006-11-14 13:26:51 · answer #2 · answered by Brian D 5 · 1⤊ 0⤋
c)
2006-11-14 14:39:36 · answer #3 · answered by Mathew C 5 · 0⤊ 0⤋