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Dima020 [189]
4 years ago
12

Amy makes an initial investment of $5000. The investment loses 13.5% each year. Find the amount Amy has at the end of 8 years.

Mathematics
1 answer:
Pani-rosa [81]4 years ago
3 0

Answer:

\$1,567.11

Step-by-step explanation:

we know that

The equation of a exponential decay function is given by

y=a(1-r)^x

where

y is the value of the investment

x is the number of years

a is the initial value

r is the rate of change

we have

a=\$5,000\\r=13.5\%=13.5/100=0.135

substitute

y=5,000(1-0.135)^x

y=5,000(0.865)^x

Find the amount Amy has at the end of 8 years

For x=8 years

substitute the value of x

y=5,000(0.865)^8=\$1,567.11

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