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a) The <em>compound interest</em> equation is .
b) There is an approximate loss of $ 987.16.
c) The stock will take approximately 12.979 to decrease by half.
<h3>How to find stock losses by compound interest model</h3>
<em>Compound interest</em> model represents the gain of a deposit as a function of the number of periods and <em>initial</em> amount. The model is represented below:
(1)
Where:
- Initial capital, in monetary units.
- Interest rate.
- Period number.
- Current capital, in monetary units.
Capital decreases in time when <em>interest</em> rate is a <em>negative</em> number. The equation that models the situation is and the current capital after eight years is:
C = 4250 · 0.9675⁸
C = 3262.84
That represents an approximate loss of $ 987.16.
And the number of periods required to decrease the capital by half is:
㏒ 0.5 = t · log 0.9675
t ≈ 20.979
The stock will take approximately 12.979 to decrease by half.
To learn more on compound interest: brainly.com/question/14295570
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