Question

Kindred invested $38,976 into first company his investment decreased by 3.5% each years over the first 3 years. Which exponential decay model could use to determine the amount his investment will be worth if in continue to decrease at the same rate?

Answer 1

Answer:

35,025.08 x 0.965 ^ X = Y

Step-by-step explanation:

Given that Kindred invested $ 38,976 into First company, and his investment decreased by 3.5% each year over the first 3 years, to determine which exponential decay model could use to determine the amount his investment will be worth if it continues to decrease at the same rate the following calculation must be performed:

100 - 3.5 = 96.5

38,976 x 0.965 ^ 3 = 35,025.08

Thus, after 3 years of losses, the value of the account will be $ 35,025.08. In turn, if we wanted to determine the amount his investment will be worth if it continues to decrease at the same rate, the following equation should be applied:

35,025.08 x 0.965 ^ X = Y

In this case, X will be the number of years the investment has fallen, and Y will be the value of said investment after the years of decline.