Question

After decreasiag by 8% during the first year, the value of an investment then increased by $450 during the second year. which equation shows the relationship between the original investment value (v) and the value (n) after the second year?

A. 0.08(450+v)=n
B. 0.08v+450=n
C. V+0.08v-450=n
D. V-0.08v+450=n

Answer 1

Original investment is V

In the first year V decreased by 0.08V to give V - 0.08V

In the second year; V - 0.08V increased by $450 to give V - 0.08V + $450

The value (n) after two years = V - 0.08V + $450

The correct choice is 'D.'