Answer: M(2) = $1500*(1 - 0.026)^2 = $1423.01
Step-by-step explanation:
Initially in the acount there is $1500
You lose a 2.6% (or 0.026 in decimal form) per year, so after the first year you have:
M = $1500 - 0.026*$1500 = $1461
After other year, you lose oter 2.6%
M = $1461 - 0.026*$1461 = $1423.01
The equation can be writen as:
M(t) = $1500*(1 - 0.026)^t
Where t is the number of years, you can use t = 2 and get:
M(2) = $1500*(1 - 0.026)^2 = $1423.01
