3
QuizMultiple Choice

Exponential Functions and Financial Literacy — Quiz

Question 3 • Advanced Financial Algebra

An investor wants to calculate the future value of his investment using the formula (3^3)^2 What does this represent for an investment that triples each year after 6 years?

Answer
A
27 times the original investment
B
9 times the original investment
C
81 times the original investment
D
729 times the original investment

Explanation

Tripling each year for 6 years means multiplying the investment by 3 six times, or 3^6. The given expression simplifies using the power-of-a-power rule: (3^3)^2 = 3^(3×2) = 3^6 = 729. So the investment is 729 times its original value, which is choice D.

AI-written and checked against the verified answer.

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