Question

You invest $20,000 in the stock market. The stock market then plummets over the next few weeks. Each day, your investment loses half of its value. How much will you have invested after 14 days? Write the geometric sequence formula and show all of your work.

Answer 1

The geometric sequence formula for this situation is:

A(n) = A(0) * r^n

where:
A(n) is the amount after n days
A(0) is the initial amount invested
r is the common ratio (in this case, r = 0.5)
n is the number of days

Using this formula, we can find the amount after 14 days:

A(14) = 20000 * (0.5)^14

A(14) = 20000 * 0.000061035

A(14) = 1.22

after 14 days of the stock market plummeting, the amount invested would be $1.22.