Natalie has just invested in a stock worth $570 that is expected to increase in value by 9% per year. The general equation for such a situation is:
A=P⋅rtA=P⋅rt
where...
A is the final amount the investment is worth.
P is the principal value (aka, the starting value).
r is the rate of increase as a decimal plus 1. So, if the rate of increase is 2%, then 2%=0.02, and we add one, so r would equal 1.02.
t is the number of years the money has been invested.
How many years will it take for the value of her stock be $2775? Round your answer to two decimal places.
+24 A = Prt, t = ?
A = 2775
P = 570
r = 1.09
t = A/Pr
t = 2775/(570*1.09)
t = 4.47 years
