An investment of $4500 decreases by 3.5% each month. a. What is the 1-month perc

Question

An investment of $4500 decreases by 3.5% each month. a. What is the 1-month percent change in the investment value? 5. b. Fill in the blank: When the time elapsed since the investment was made increases by 1 month, the new value of the investment is % of the old value of the investment. What is the 1-month growth or decay factor and what does this value tell us about the situation? c. Write a function formula to model the value of the investment (in dollars) in terms of the time elapsed since the investment was made (in months). d.

Explanation / Answer

Ans(a):

96.50%

Ans(a):

Value of investment decreases 3.5% per month so 1 month percent change in investment value = 4500*(-3.5)% -157.5 it decrease by 157.5 1 month percent change is -3.5% Ans(b): new value of investment = 4500-157.5 4342.5 old value of investment= 4500 so required percent = (4342.5/4500)*100 96.500

96.50%

Ans(c): Since the investment value is decreasing, it is decaying 1 month decay factor =1+r/100 1+(-.035)= 0.965 Ans(d): Formula will be let t be the time in months f(t)=$4500(0.965)^t

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.