Question

an investment of 12,000 is losing value at a rate of 4% each year. what is the exponential function to model the situation after 9 years

Answer 1

Amount after 9 year = 8,310 (Approx.)

Explanation:

Given:

Amount invested = 12,000

Rate on decline = 4% per year = 0.04

Number of year = 9

Find:

Amount after 9 year

Computation:

A = P[1+r]ⁿ

A = 12,000[1-0.04]⁹

A = 12,000[0.96]⁹

A = 12,000[0.6925]

Amount after 9 year = 8,310 (Approx.)