Question

mr.jones decided to invest in the stock market, but the market declined by an average of 2.5% each month during the first 6 months of his investment. If mr.jones initially invested $1,500, how much does he have remaining?

Answer 1

Explanation:

If the stock market declined by an average of 2.5% each month during the first 6 months of Mr. Jones' investment, we can calculate the total percentage decrease using the following formula:

(1 - 0.025)^6 = 0.8938

This means that after 6 months, Mr. Jones' investment would have decreased by approximately 10.62% (1 - 0.8938 = 0.1062).

To calculate how much money Mr. Jones has remaining, we need to multiply his initial investment of $1,500 by the percentage decrease:

$1,500 x 0.1062 = $159.30

Therefore, Mr. Jones would have $1,500 - $159.30 = $1,340.70 remaining after the first 6 months of his investment in the stock market with an average decline of 2.5% each month.