Question

Mike invested $7500 in stocks. He is considering transferring his investment to another fund because since making his investment, the value of his investment has been decreasing by 0.4% per month. If Mike's investment continues to decrease at this rate and he doesn't transfer it to another fund, how long will it take for the stock's value to be less than $7000?

Answer 1

About 17 months
Actual number 16 2/3

Answer 2

7000=7500 (1-0.004)^x
Solve for x
X=log(7,000÷7,500)÷log(1−0.004)
X=17.21 months