To find out how many times greater the value of the investment is today compared to 20 years ago, you can divide the current value of the investment by its value 20 years ago.
Current value = \(1.2 \times 10^7\) dollars
Value 20 years ago = \(9.6 \times 10^5\) dollars
Now, calculate the ratio:
\[ \text{Ratio} = \frac{1.2 \times 10^7}{9.6 \times 10^5} \]
To simplify, you can divide both numbers:
\[ = \frac{1.2}{9.6} \times \frac{10^7}{10^5} \]
Calculating the fractions:
- \( \frac{1.2}{9.6} = \frac{12}{96} = \frac{1}{8} = 0.125 \)
- \( \frac{10^7}{10^5} = 10^{7-5} = 10^2 = 100 \)
Now multiply those results together:
\[ 0.125 \times 100 = 12.5 \]
Thus, the investment today is 12.5 times greater than the investment 20 years ago.
The correct response is 12.5.