Question

Seth invested n dollars into an investment fund last year. After a period of one year, the value of his investment can be represented by the expression 0.84n. Select the true statement. A. The value of his investment decreased by 16% during this time period. B. An equivalent expression that represents this situation is n - 0.16. C. The value of his investment increased by 84% during this time period. D. An equivalent expression that represents this situation is 1 - 0.16n.

Answer 1

A. The value of his investment decreased by 16% during this time period.

Explanation:

To answer this problem, suppose an amount n.

After a year in value of the investment is:

`0.84n`

Now we calculate the rate of change of n with the following formula:

`V = (Final\ Amount - Initial\ Amount)/(Initial\ Amount)`

`V = (0.84n-n)/(n)*100\%\\\\V = (n(0.84-1))/(n)*100\%\\\\V = (0.84-1)*100\%\\\\V = -0.16 * 100\%\\\\V = -16\%`

The value of the investment decreased by 16% with respect to the initial amount.

The correct answer is the option

A. The value of his investment decreased by 16% during this time period.