Answer:
$3,660,000
Step-by-step explanation:
The multiplier each year is (1 +r), where r is the rate of increase per year. Here, we are given r = 13%, so the multiplier is 1.13. Repeated multiplication is written using an exponent, so when we multiply by this value 27 times, we are multiplying by 1.13^27. The value after 27 years is about ...
$135,000 · 1.13^27 ≈ $3,660,000 . . . . . rounded to the nearest 1000
