Berto invested in a precious mineral. the value of the mineral tends to increase by about 11% per year. he invests $40,000 in 2015. how much more will his investment be worth in 2020? enter your answer in the box. round to the nearest whole dollar.

$27402.    

Step-by-step explanation:

We have been given that Berto invested in a precious mineral. The value of the mineral tends to increase by about 11% per year. He invests $40,000 in 2015.

Let us write a function using our given information for the value of minerals.

We are told that the value of minerals increase by 11% every year, so our function will be an exponential function.

Since an exponential function is in form: ; for growth b=(1+r), where r is rate of growth in decimal form.

a= Initial value.  

Let us convert our given rate in decimal form.

Let G(t) be the growth of minerals t years after 2015.

Upon substituting our given values we will get our function as:

To find the value of Berto's investment in year 2020 by substituting t=5 in our function as 2020-2015=5.

Therefore, the value of his investment in 2020 will be $67402.

Let us find the difference of values of minerals between 2020 and 2015.

67402-40000=27402

Therefore, Berto's investment will be worth $27402 in 2020.

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