Mark has invested $300 at age 16 into a money market account earning 6%. How many times will Mark's investment double before age 52? What will his investment be worth? What would Mark's investment be if he had invested at age 28?

Question

Chump

Mathematics

6 March, 16:11

Mark has invested $300 at age 16 into a money market account earning 6%. How many times will Mark's investment double before age 52? What will his investment be worth? What would Mark's investment be if he had invested at age 28?

+5

Answers (1)

Know the Answer?

Edward Cole · Answer 1

A. 3times

B.$1214.68

Step-by-step Explanation

A

Using compound interest formula

A=P (1+I) ^n

A is the amount

P is the principal=$300

I is the interest=0.06

n is the time (between 52 and 16years) = 36years

A=300 (1+0.06) ^36

A=$2444.175

Which means 300 would have become

$2444.175 which is 8 folds.

That means it would have doubled 3times (2*2*2) at age of 52.

B. The time would change to (52-28) = 24

Using compound interest formula

A=300 (1+0.06) ^24

A=$1214.68

Therefore his investment would have been $1214.68.