An investment increases at a rate of 25% each year, how many times will increase in 5 years? Select one: a. (0.25) 5e b. (1.25) C. (1.5) 5 d. 55
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Answers
Answered by
13
Answer:
It is given that
Original price of the property (P) = 100
Rate of increase (r) = 25% p.a.
Period (n) = 3 years
We know that
Increased value after 3 years = P(1+r/100)
n
Substituting the values
=100(1+25/100)
3
By further calculation
=100×5/4×5/4×5/4
= 3125/16
Here
Increased value = 3125/16 - 100
Taking LCM
=(3125−1600)/16
=1525/16
So the percent increase after 3 years = 1525/16=955/16%
Explanation:
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Answered by
2
AS WE KNOW IT INCREASES 25 % each year OVERLY IT WILL INCREASE 125% in 5 years but genuinely it will also increase the rate of 25 % every year so after 5 years totally it will increase 185%
Hope it helps
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