Solve the problem.

-In 1985, John invested $26,000 in the stock market. By 1992 his investment had grown to $27,600. If the market continues to grow at the same rate, how much will be in his account in 1997? Give your Answer to the nearest dollar.
A) $28,743
B) $27,144
C) $27,601
D) $29,200

Question

Solve the problem.

-In 1985, John invested $26,000 in the stock market. By 1992 his investment had grown to $27,600. If the market continues to grow at the same rate, how much will be in his account in 1997? Give your Answer to the nearest dollar.
A) $28,743
B) $27,144
C) $27,601
D) $29,200

Quizplus · Accepted Answer

The growth from $26,000 to $27,600 over 7 years (1985 to 1992) is $1,600. To find the annual growth rate, divide the total growth by the number of years: $1,600 / 7 = $228.57 per year. From 1992 to 1997 is 5 years, so the growth over these 5 years is $228.57 * 5 = $1,142.85. Adding this to the 1992 amount, $27,600 + $1,142.85 = $28,742.85, which rounds to $28,743.

Solve the Problem. -In 1985, John Invested $26,000 in the Stock Market. by the Stock