Question

I need help with an Exponential Growth & Decay Word Problem. This is the problem: Mr. Jacobs won $1,000,000 in the lottery. He withdraws 10% of the money every year. How much money will he have left after 20 years? [Round your answer to the nearest dollar]

Answer 1

Remember that for decay A=P(1-r/100)^n
A=end amount
P=principal (initial) amount
R=rate
n=time (in this case, years)
For growth it is A=P(1+r/100)^n