Question

Milton has his money invested in a stock portfolio. The value, v(.r), of his

Answer 1

Answer:

B) It decreases 22% per year.

Step-by-step explanation:

We are given that The value, v(.r), of his  portfolio can be modeled with the function : $y(x) = 30,000(0.78)^x$

Where x is the number of years since he made his investment.

Formula :$P(1-r)^t=A$

Where P = Principal

r = rate of decrease

t = time

A = Amount after t years

So, On comparing

P = 30000

t=x

A=y(x)

$1-r=0.78$

$\Rightarrow 1-0.78=r$

$\Rightarrow 0.22=r$

So, r = 0.22

r=22%

So, Rate of decrease is 22%

So, Option B is true,

It decreases 22% per year.