SOLUTION: The performance of a certain stock can be modeled by the equation d(t)=2000(1.2)^t. If (d)t is the amount of money the stock is currently worth, and t is the time in the years afte

Algebra ->  Quadratic Equations and Parabolas -> SOLUTION: The performance of a certain stock can be modeled by the equation d(t)=2000(1.2)^t. If (d)t is the amount of money the stock is currently worth, and t is the time in the years afte      Log On


   

Question 536915: The performance of a certain stock can be modeled by the equation d(t)=2000(1.2)^t. If (d)t is the amount of money the stock is currently worth, and t is the time in the years after the initial investment, how has the value of the stock changed after 24 months?
(A) It has decreased by $2880.
(B) It has decreased by $120.
(C) It has increased by $400.
(D) It has increased by $880.
(E) It has increased by $2880.
Answer by fcabanski(1391) About Me  (Show Source):
You can put this solution on YOUR website!
24 months is 2 years. So t=2.


d%28t%29=2000%281.2%29%5E2=2880


You should have been able to instantly eliminate A and B.


2880 - 2000=880.


It has increased by 880. That's D.

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