Question

an investment has been losing money at a rate of 4% per year. the value of the investment now is $75,000. what will be the value of the investment im 10 years?

Answer 1

Answer:

Step-by-step explanation:

Use the equation

$A(t)=P(1-r)^t$ because the account is depreciating at a rate of 4%. Filling in:

$A(t)=75000(1-.04)^t$ to get our model.

$A(t)=75000(.96)^t$ Now we fill in 10 for t and solve:

$A(t)=75000(.96)^{10}$ so

A(t) = $49,862.45 in ten years