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A fund was invested 25 year ago. Its val...

A fund was invested 25 year ago. Its value is approximately $300,000 now. If the volume of the fund double each year forr the last 10 year, how long ago was the value of the fund exactly half of the current value?

A

Half a year ago

B

1 year ago

C

2 year ago

D

5 year ago

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we need to analyze the information given and apply the concept of exponential growth. ### Step 1: Understand the current value of the fund The current value of the fund is approximately $300,000. ### Step 2: Determine the growth pattern of the fund It is stated that the volume of the fund doubles each year for the last 10 years. This means that if we go back 1 year, the value of the fund was half of what it is now. ### Step 3: Calculate the value of the fund one year ago Since the fund doubles each year, we can find the value of the fund one year ago: - Current value = $300,000 - Value one year ago = Current value / 2 = $300,000 / 2 = $150,000 ### Step 4: Determine when the fund was half of its current value The question asks when the value of the fund was exactly half of the current value ($300,000). As calculated in Step 3, the fund was half of its current value ($150,000) one year ago. ### Conclusion Thus, the value of the fund was exactly half of the current value 1 year ago. ### Final Answer The answer is: 1 year ago. ---
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