Question

Seth invested n dollars into an investment fund last year. After a period of one year, the value of his investment can be represented by the expression 0.84n. Select the true statement. A. The value of his investment decreased by 16% during this time period. B. An equivalent expression that represents this situation is n - 0.16. C. The value of his investment increased by 84% during this time period. D. An equivalent expression that represents this situation is 1 - 0.16n.

Answer 1

Answer:

A. The value of his investment decreased by 16% during this time period.

Step-by-step explanation:

To answer this problem, suppose an amount n.

After a year in value of the investment is:

$0.84n$

Now we calculate the rate of change of n with the following formula:

$V = \frac{Final\ Amount - Initial\ Amount}{Initial\ Amount}$

$V = \frac{0.84n-n}{n}*100\%\\\\V = \frac{n(0.84-1)}{n}*100\%\\\\V = (0.84-1)*100\%\\\\V = -0.16 * 100\%\\\\V = -16\%$

The value of the investment decreased by 16% with respect to the initial amount.

The correct answer is the option

A. The value of his investment decreased by 16% during this time period.