Mason invested $6000 in King Steel. His investment earned him an average
of 7.5% each year. How much will his investment be worth in 5 years?

  $8,613.78

Step-by-step explanation:

The multiplier each year is 1+7.5% = 1.075, so in 5 years, the investment will have been multiplied by 1.075^5 ≈ 1.435629.

Then the value of Manson's investment will be ...

  $6000·1.435629 ≈ $8,613.78

Comment on the question

The first rule of investing is that "past performance is not a guarantee of future results." The question has a funny combination of past tense and future tense verbs. The past performance is described, and we are asked about the future value. In truth, we cannot say anything about the future value.

1. 3. can also be expressed as (22/7)

2. -4.5

3. 3.6

happy to

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