SOLUTION: Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.

Question 568880: Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.
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Each year 85% of the value of the fund survives.
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After one year you have 0.85A
After two year you have (0.85^2)A
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After x years you have (0.85^x)A
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Equation:
V(x) = (0.85^x)A
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Cheers,
Stan H.
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