Question

The value y of an investment x months after the money was invested is given according to the equation below. y = 25,000(1.16)-x As time goes on, does the value of the investment grow or decay?

Answer 1

Decay

Explanation:

Answer 2

Decay

Explanation:

The value, y of an investment x is given by:

y = 25000(1.16)^-x

x = number of month after investment

y = value of investment after x months

The function f(y) above is an exponential usually related in the form:

y = Ar^-x

Plugging values of x into the function :

After 1 month; x = 1

y = 25000(1.16)^-1 = 21551.724

After 2 month; x = 2

y = 25000(1.16)^-2 = 18579.072

After 3 month; x = 3

y = 25000(1.16)^-3 = 16016.441

Since y is decreasing with increasing value of x, then we have a decay