An investment made in the stock market decreased at a rate of 2.2% per year for 10 years. What is the current value of
1 answer:
Answer:
$800,500 (nearest dollar)
Step-by-step explanation:
The given scenario can be modeled as an <u>exponential equation</u>.
<u>General form of an exponential function</u>:
where:
- a is the initial value (y-intercept)
- b is the base (growth/decay factor) in decimal form
- x is the independent variable
- y is the dependent variable
If b > 1 then it is an increasing function
If 0 < b < 1 then it is a decreasing function
The initial value (a) is the value of the investment.
Therefore, a = 1,000,000.
If the investment <u>decreases</u> by 2.2% each year, then it will be 97.8% of the previous year.
Therefore, b = 97.8% = 0.978.
Substitute these values into the formula to create a general equation for the scenario:
(where x is the time, in years).
To find the value of the investment after 10 years, substitute x = 10 into the formula:
Therefore, the value of the investment after 10 years is $800,500 (nearest dollar).
Learn more about exponential functions here:
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Step-by-step explanation: To draw a line plot for the data shown here, first begin by drawing a line.
Next, notice that the smallest number in our data set is 10 so we begin our line plot at 10. Next, notice that the greatest number in our data set is 22 so we continue our line plot until 22.
Now we fill in the numbers in between.
So we have 10 which we already have, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 22.
Now, notice that there is one 10 in our data set so we put one x above 10. Next, notice that are no 11's, no 12's, and no 13's in our data set. So we put no x's above 11, no x's above 12, and no x's above 13. Next, notice that there is one 14 in our data set so we put one x above 14. Now, notice that there is one 15 and one 16 in our data set so we put one x above 15 and one above 16. Since there are no 17's or 18's in our data set, we put no x's above 17 and no x's above 18. Finally, notice that there is three 19's, no 20's, one 21, and one 22 in our data set so we put three x's above 19, and one x above 21 and 22. We put no x's above 20.
I have attached my line plot in the image provided.
