Answer-
The total amount you would have earned over the first 16 years is $90047.20
Solution-
The exponential function that would given the growth is,
[tex]P'=P(1+r)^t[/tex]
Where,
P' = Future value,
P = Current value = $50000
r = rate of change = 4% = 0.04
t = time = 15 year (not 16 because the the increment occurs at year end and we want to get the value at the beginning of 16th year)
Putting the values,
[tex]P'=50000(1+0.04)^{15}[/tex]
[tex]=50000(1.04)^{15}[/tex]
[tex]=90047.20[/tex]
Therefore, the total amount you would have earned over the first 16 years is $90047.20
