Question

an investment has been losing money at a rate of 4% per year. the value of the investment now is $75,000. what will be the value of the investment im 10 years?

Answer 1

Explanation:

Use the equation

`A(t)=P(1-r)^t` because the account is depreciating at a rate of 4%. Filling in:

`A(t)=75000(1-.04)^t` to get our model.

`A(t)=75000(.96)^t` Now we fill in 10 for t and solve:

`A(t)=75000(.96)^(10)` so

A(t) = $49,862.45 in ten years