Question

The value of Bulls Eye stock has decreased 8% each year for the past several years. If in 2010 the stock was worth

$50 and that pattern continues, how much will it be worth in 2015? Include an exponential equation

Answer 1

$ 32.95

Explanation:

Cost of Stock at 2010= $ 50

Declining rate each year= 8%

We have to find cost of stock at 2015

Cost of stock after 5 years= $ 50
`(1-(8)/(100) )^(5)`

Value of stock after 5 years= $ 50
`((100-8)/(100) )^(5)`

Value of stock after 5 years= $ 50
`((92)/(100) )^(5)`

Value of stock after 5 years= $ 32.95

Hence, the correct answer is $ 32.95