The value of an investment doubles every 32 months. If the investment starts with $3700 how much money is in the investment after 3 months (rounded to the nearest hundredth)?
A) $3700.00
B) $3781.02
C) $7400.00
D) $3948.42
E) $4661.71

Question

Quizplus · Accepted Answer

The investment doubles every 32 months, so the monthly growth rate can be calculated using the formula for exponential growth: Final Amount = Initial Amount * (Growth Rate)^Time. The growth rate per month is (2)^(1/32). After 3 months, the investment value is $3700 * (2)^(3/32) = $3948.42, rounded to the nearest hundredth.

The Value of an Investment Doubles Every 32 Months