Question

Write a formula that describes the value of an initial investment of $4,000 that loses value at a rate of 10% per year, compounded continuously.

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Answer 1

see below

Explanation:

The formula is the same whether the rate of change is positive or negative. Here, it is negative.

A = Pe^(rt)

for P = 4000, r = -0.10. Then you have ...

A = 4000e^(-0.10t)