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Mathematics

1 answer:

zepelin [54]3 years ago

7 0

Answer: Choice B) Investment decreases by 3% each month

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Explanation:

We won't use the value 2500 at all.

The base of the exponential is 0.97

Set this equal to 1+r and solve for r

1+r = 0.97

r = 0.97-1

r = -0.03

The negative r value indicates we have exponential decay, so the value of the investment decreases by 3% each month.

Let's say you had $100 to start off. This would mean the investment would be worth $97 after one month is up.

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