Question

A philanthropist pledges to donate 16% of a fund each year. If the fund initially has $708,000.00, how much will the fund have after 10 years?

Answer 1

`\qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{current amount}\\ P=\textit{initial amount}\dotfill &708000\\ r=rate\to 16\%\to (16)/(100)\dotfill &0.16\\ t=years\dotfill &10\\ \end{cases} \\\\\\ A = 708000(1 - 0.16)^(10) \implies A=708000(0.84)^(10)\implies A \approx 123830.07`