Investments increase exponentially by about $26 %$ every 3 years. If you made a $$ 2000$ investment, how much money would you have after 45 years?
Future Amount $= [?] (1 + [])$
Future Amount $= I (1 + r)^{t}$

Answer

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Answer

$A f t e r 45 y e a r s, t h e i n v e s t m e n t w o u l d b e w o r t h a p p r o x i m a t e l y $ 64, 060.18$

Steps

Step 1 ：Calculate the number of time periods (3-year intervals) in 45 years: $\frac{45}{3} = 15$ time periods

Step 2 ：Use the compound interest formula: Future Amount = Initial Investment * $(1 + I n t e r e s t R a t e)^{T i m e P e r i o d s}$

Step 3 ：Plug in the values: Future Amount = $2000 * (1 + 0.26)^{15}$

Step 4 ：Calculate the future amount: Future Amount = $2000 * (1.26)^{15}$ = 64060.182624413

Step 5 ： $A f t e r 45 y e a r s, t h e i n v e s t m e n t w o u l d b e w o r t h a p p r o x i m a t e l y $ 64, 060.18$