The graph shows the total amount of an investment account with a principal of $1,500 which increases 1.5 times every 10 years. Use the graph to estimate the total amount of the account if $1,500 is invested for 32 years.

(1 point)
Responses

$5,000
$5,000

$5,500
$5,500

$6,200
$6,200

$7,800

1 answer

To estimate the total amount of the investment account after 32 years, we can analyze how much the principal of $1,500 increases every 10 years. Given that the investment increases 1.5 times every 10 years, we can calculate the investment amount at different intervals.

After 10 years: \[ 1,500 \times 1.5 = 2,250 \]

After 20 years: \[ 2,250 \times 1.5 = 3,375 \]

After 30 years: \[ 3,375 \times 1.5 = 5,062.50 \]

Since we need the estimation for 32 years, we can consider that 32 years is 2 years past 30. Assuming the growth continues at a similar rate, we estimate the amount for those additional 2 years (noting that it would still be a rough estimate).

The growth in the first 10-year period is about 50% of the 10-year cycle increase. To simplify, if we take a percentage of the last value:

Let's estimate that the growth during those 2 years would be roughly between the two 10-year increments. If it increases around 5% each year (a rough approximation derived from the 1.5x increase), for 2 years that would be: \[ 5,062.50 \times 0.05 \times 2 = 506.25 \]

Adding this small increase to the amount after 30 years: \[ 5,062.50 + 506.25 \approx 5,568.75 \]

Since we are estimating based on the provided options, it would be fair to round to the nearest option available. Among the given choices, $5,500 is the closest estimate.

Therefore, the estimated total amount of the account if $1,500 is invested for 32 years is:

$5,500