SOLUTION: amy makes an initial investment of 5000 the investment loses 13.5% each year find the amount any has at the end of 8 years

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Question 1200931: amy makes an initial investment of 5000 the investment loses 13.5% each year find the amount any has at the end of 8 years
Found 2 solutions by ikleyn, greenestamps:
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
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amy makes an initial investment of 5000 the investment loses 13.5% each year
find the amount any has at the end of 8 years
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Does "amy" use the same account as "any" ?




Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


The value loses 13.5% of its value each year; that means the value gets multiplied by 100% - 13.5% = 86.5%, or 0.865, each year. If that happens for 8 years, the value of the original $5000 after 8 years is

5000%280.865%29%5E8

which is $1567.11, rounded to the nearest cent.