document.write( "Question 1088198: If $15500 is invested at a rate of 4.5% per year compounded yearly, find value of the investment at each give time and round to the nearest cent. Use either A=P(1+r/n)^nt or A=Pe^rt. (a) after 5 months A=$____. (b)after 48 years, A=$____. (c) after 91 years, A=$____. \n" ); document.write( "

Algebra.Com's Answer #702493 by Boreal(15235) $\"\"$ $\"About$

You can put this solution on YOUR website!
after 5/12 of a year, which is 5 months,
\n" ); document.write( "15500*e^((5/12)(9/200))=$15793.37
\n" ); document.write( "after 48 years, 15500*(e^(48*0.045))=$134402.63.
\n" ); document.write( "after 91 years, 15500*e^(.045*91)=$930609.76
\n" ); document.write( "Rule of 72 would predict doubling about every 16 years.
\n" ); document.write( "Therefore, 48 years would be doubling 3 times or 8 fold increase or $124,000. This is in the right range.
\n" ); document.write( "91 years would be an increase of almost 64 fold or a little under $1 million. This is also in the right range.
\n" ); document.write( "(the rule of 72 is more exact at 70 and very exact at 69.3)
\n" ); document.write( " \n" ); document.write( "

\n" );