Question

I need help with this formula about this initial investment loss.
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Answer 1

C. A = 4000e^(-0.10 t)

Explanation:

Continuously compounded interest equation is:

A = Pe^(rt)

where A is the final amount,

P is the initial amount,

r is the rate in decimal form,

and t is time.

Here, P = 4000 and r = -0.10.

A = 4000e^(-0.10 t)

Answer 2

Continuously compounded uses e.

Losing value would be the negative value = -0.10

The formula would be A(t) = 4000e^-0.10t