Question

jins investment of 4500 has been losing its value at a rate of 2.5% each year. what will his investment be worth in 5 years.

Answer 1

To answer this question we need to use the formula:

`A=P(1-r)^t`

where A is the final amount, P is the principal (the initial investment) and r is the rate in decimal form.

In this case we have P=4500, r=0.025 and t=5. Then:

`A=4500(1-0.025)^5=3964.93`

Therefore, after 5 years Jim investment will be $3964.93