Question

The value of a certain stock has decreased 5% per day for the past 10 days. The initial price of the stock was $30 per share. Which equation describes the value of the share price of the stock as a function of n, the number of days elapsed during the 10-day period

Answer 1

v(n)= 30(0.95)n

Explanation:

The n is to the power at the end. HOPE THIS HELPS

Answer 2

V(n) = 30(0.95)^n

Explanation:

We treat as a continous function :

Rate of decrease = 5%

Period, n = 10 days

Initial stock price = $30

Value of share price as a function of n:

Value, V(n)

Initial price = A

V(n) = Initial price(1 - rate)^n

V(n) = 30(1 - 0.05)^n

V(n) = 30(0.95)^n